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Autoliv (ALV) Stock Up 7% Since Q1 Earnings & Sales Beat

Shares of Autoliv Inc. ALV have rallied 7% since the company reported first-quarter 2024 results. It reported adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.40 and rose 75.5% year over year. The outperformance can be attributed to better-than-expected sales across both units. The company reported net sales of $2.61 billion in the quarter, which topped the Zacks Consensus Estimate of $2.57 million and rose 4.9% year over year.

Organic sales rose 5% year over year and outpaced our estimate of 3.7% due to product launches and higher prices. Autoliv reported adjusted operating income of $199 million, up 51% year over year. Adjusted operating margin was 7.6%, higher than 5.3% in the year-ago period, driven by organic growth and cost control efforts.

Autoliv, Inc. Price, Consensus and EPS Surprise

Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. Price, Consensus and EPS Surprise

Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote

Segmental Performance

Sales in the Airbags and Associated Products segment totaled $1.78 billion, beating our projection of $1.76 billion. Revenues rose 6.5% on a year-over-year basis. All major categories within the segment witnessed organic sales growth, the primary reason being a rise in sales of steering wheels, followed by inflatable curtains, side airbags and driver airbags.

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Sales in the Seatbelts and Associated Products segment totaled $834 million, up 1.7% from the prior-year quarter and topped our projection of $821 million. Organic growth in the Americas, Europe and Asia, excluding China, contributed to the year-over-year increase.

Region-wise, overall sales in the Americas during the quarter under review totaled $893 million, which surpassed our estimate of $864 million and increased 7.5% year over year.

Sales in Europe totaled $770 million, topping our forecast of $755 million and increasing 6.1% year over year.

Sales in China came in at $460 million, missing our projection of $464.6 million but rising 1.7% year over year.

Sales in the Rest of Asia totaled $491 million, up 1.7% year over year but missed our projection of $500.7 million.

Financial Position

Autoliv had cash and cash equivalents of $569 million as of Mar 31, 2024. Long-term debt totaled $1.83 billion. Operating cash flow in the quarter under review was $122 million and capital expenditure amounted to $140 million, resulting in a negative free cash flow of $18 million. In the quarter, ALV paid a dividend of 68 cents per share and repurchased $1.37 million shares.

2024 Guidance

The company forecasts full-year 2024 organic sales growth of around 5%. The adjusted operating margin is anticipated to be approximately 10.5%. Operating cash flow is expected to be $1.2 billion in 2024.

Autoliv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Oshkosh Corporation OSK reported first-quarter 2024 adjusted earnings of $2.89 per share, beating the Zacks Consensus Estimate of $2.26. The bottom line also rose from $1.59 per share recorded in the year-ago period. Consolidated net sales climbed 12.2% year over year to $2.54 billion. The top line also surpassed the Zacks Consensus Estimate of $2.51 billion. OSK had cash and cash equivalents of $69.9 million as of Mar 31, 2024, compared with $125.4 million as of Dec 31, 2023. The company had a long-term debt of $598.9 million, up from $597.5 million as of Dec 31, 2023.

BorgWarner BWA reported adjusted earnings of $1.03 per share for first-quarter 2024, down from $1.09 per share recorded in the prior-year quarter. The bottom line, however, surpassed the Zacks Consensus Estimate of 87 cents. It reported net sales of $3.6 billion, beating the Zacks Consensus Estimate of $3.52 billion. The top line, however, declined 13.9% year over year. As of Mar 31, 2024, BWA had $1.03 billion in cash/cash equivalents/restricted cash compared with $1.53 billion as of Dec 31, 2023. As of Mar 31, long-term debt was $3.3 billion, down from $3.7 billion recorded on Dec 31, 2023.

Gentex Corp. GNTX reported first-quarter 2024 adjusted EPS of 47 cents, which came in line with the Zacks Consensus Estimate and grew 12% year over year. It reported net sales of $590.2 million, which missed the Zacks Consensus Estimate of $600 million but increased 7% from the year-ago period. Gentex had cash and cash equivalents of about $249 million as of Mar 31, 2024. The company had nearly 14.7 million shares remaining for buyback as of Mar 31.

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BorgWarner Inc. (BWA) : Free Stock Analysis Report

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