Delphi Offers Long-Term Outlook; Reports New $1.5 Billion Buyback Plan

Shares of Delphi Automotive PLC DLPH gained more than 5 percent on Wednesday after the company provided investors with a long-term outlook and announced a new share buyback program. Speaking at a conference in London on Wednesday, Delphi's management said that it expects its fiscal 2016 organic sales to rise 8 to 10 percent. The company also expects to see its earnings per share grow in the mid-teens range and expects a 16 percent growth in dividends. Looking beyond fiscal 2016, Delphi expects to realize an 8 to percent compounded annual growth rate in sales in fiscal 2018 through 2020. During the same time period, management expects to realize a double-digit growth in its earnings per share. The company also provided a capital deployment guideline for 2016 through 2018 with the following breakdown: 45-55 percent M&A and share repurchases, 35-40 percent capital expenditures, 10-15 percent dividends. In the interim, Delphi announced a new share repurchase program totaling $1.5 billion which "reflects continued confidence" in the business and the company's "commitment to create and enhance value." Delphi also highlighted a previously announced increase to its annual dividend payout to $1.16 per share which represents 15 percent of 2016's operating cash flow.