Aptiv's Q2 Earnings Beat Estimates, Increase Y/Y

Aptiv PLC APTV reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.58 per share beat the Zacks Consensus Estimate by 15.3% and increased 26.4% year over year. Revenues of $5.1 billion missed the Zacks Consensus Estimate by 5.1% and decreased 2.9% year over year.

The company's adjusted revenues declined 2% year over year. Adjusted revenues declined 3% in North America and stayed flat in Asia, including a 1% increase in China. Revenues declined 2% in Europe and 13% in South America.

APTV's stock has lost 35% of its value in the past year against the 35% rally of the industry it belongs to.

Other Quarterly Numbers

Signal and Power Solutions' revenues of $3.5 billion declined 5% year over year. The Advanced Safety and User Experience segment's revenues increased 1% year over year to $1.6 billion.

Adjusted operating income was $606 million, up 14.3% from the figure reported in the year-ago quarter. Adjusted operating income margin was 11.1%, up 180 basis points year over year.

Aptiv exited the quarter with a cash and cash equivalent balance of $1.4 billion compared with the prior quarter's $941 million. Long-term debt was $5.5 billion compared with $4.7 billion in the previous quarter.

Total available liquidity at the end of the quarter was $4.6 billion compared with $3.4 billion recorded at the end of the prior quarter. In the quarter, the company generated $643 million in cash from operating activities.

Updated 2024 Outlook

Aptiv expects revenues to be between $20.1 billion and $20.4 billion compared with the prior expectation of $20.85-$21.45 billion, and lower than the current Zacks Consensus Estimate of $21.07 billion.

Adjusted EPS is expected between $6.15 and $6.45 compared with the previous anticipation of $5.8 and $6.3, and higher than the Zacks Consensus Estimate of $5.94. Adjusted operating income margin is anticipated between 11.8% and 12.1% compared with the previous guidance of 11.6% and 12%. Capital expenditure is expected to be $900 million against the previous expectation of $1 billion.

Adjusted EBITDA margin is now expected between 15.4% and 15.7%, while the previous expectation was 15% to 15.3%. The adjusted effective tax rate is expected to be around 16.5% compared with the previous expectation of 17.5%.

Currently, Aptiv carries a Zacks Rank #4 (Sell).

Recent Earnings Snapshots

Omnicom OMC reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC's earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax EFX reported better-than-expected second-quarter 2024 results.

EFX's adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

ManpowerGroup MAN reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.

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