Automotive Technology Supplier Aptiv Warns On $180M Adverse Impact From UAW Strike; Stock Plunges

Aptiv PLC APTV reported third-quarter FY23 sales growth of 10.8% year-on-year to $5.11 billion, beating the analyst consensus estimate of $5.09 billion.

Revenue rose 7% adjusted for currency exchange and commodity movements. This reflects growth of 10% in Europe, 10% in North America, 2% in Asia, which was flat in China, and 12% in South America.

Operating expenses rose 12.6% Y/Y to $4.7 billion. The adjusted operating margin was 11%, with an Adjusted operating income of $560 million and an Adjusted EBITDA of $727 million.

Cash generated in operating activities amounted to $746 million in the quarter. The company held $1.8 billion in cash and equivalents as of September 30, 2023.

Adjusted EPS of $1.30 beat the analyst consensus of $1.23.

Outlook: Aptiv continues to expect FY23 adjusted EPS of $4.60 - $4.90, versus the consensus of $4.72.

APTV continues to expect FY23 net sales of $19.950 billion - $20.250 billion, versus the consensus of $20.16 billion. It expects FY23 adjusted EBITDA of $2.755 billion - $2.855 billion.

The guidance includes a $180 million revenue impact due to the UAW strike in Q3 and $1.10 per diluted share for the anticipated equity losses to be recognized by Aptiv from the performance of the Motional autonomous driving joint venture.

Price Action: APTV shares traded lower by 17.3% at $71.17 on the last check Thursday.