Autoliv Q3: Earnings Miss, Raised FY23 Organic Sales Growth Outlook & More

Autoliv Inc ALV reported third-quarter FY23 sales growth of 13% year-on-year to $2.596 billion, missing the analyst consensus estimate of $2.64 billion.

Adjusted operating margin for the quarter was 9.4% versus 7.5% last year. Adjusted operating income increased 40% to $243 million.

Return on capital employed expanded to 620 basis points to 24.2%. 

Gross profit for the quarter increased 21% Y/Y to $465 million with a gross margin of 17.9%.

"Our organic sales growth continued to significantly outperform LVP and the adjusted operating income was a new third quarter record since the spin-off in 2018.," said President and CEO Mikael Bratt.

"Cash flow was strong, and the debt leverage remained well within our target range while maintaining our dividend and almost tripling the number of shares repurchased compared to Q2."

Adjusted EPS of $1.66 missed the analyst consensus estimate of $1.84.

Operating cash flow totaled $202 million for the quarter. The company held cash and equivalents of $475 million at the end of the third quarter.

Net debt at the end of the third quarter amounted to $1.38 billion.

Outlook: Autoliv raised its FY23 organic sales growth outlook from 15% to 17%. It continues to see adjusted operating margin of around 8.5%-9%, and $900 million in operating cash flow.

Price Action: ALV shares are trading higher by 0.85% at $90.94 during the pre-market session on Friday.