Apitv’s share price jumped in May thanks to a strong first quarter
Aptiv, the self-driving, connected car, and related tech company that used to be Delphi Automotive, reported a strong first quarter at the beginning of May, sending its share price higher.
The company is perfectly positioned to be a key player in the trend towards autonomous vehicles, and it demonstrated its capacity in this area quite literally – with the provision of a 30-car strong fleet of autonomous Lyft rides in Las Vegas – throughout the first quarter. Add an interesting acquisition to the mix, and you have ample cause for the company’s share price to rise.
Aptiv’s share price jumped in May when the company released first quarter earnings
SOURCE: Yahoo Finance
Aptiv saw a 15% increase in revenue for the quarter, measured year on year. That came in at $3.6 billion, which converts to a still respectable 8% increase from the year-ago quarter when adjusted for currency effects, acquisitions and divestitures. Adjusted earnings per share jumped 19% from the comparable period in the 2017 to $1.29, operating income margin rose by 60 basis points to 11.8%, and adjusted operating income soared by 21% against the previous year.
Aptiv also announced that it would be making an interesting acquisition, buying KUM Co., which describes itself as a “manufacturer of specialized connectors and cable management” with a market-leading presence in Asia Pacific. That could signify a bigger better footprint for Aptiv in the region.
Speaking about the results, the company’s president and CEO, Kevin Clark, said: "We are off to an outstanding start in 2018, with revenue and earnings above first quarter expectations. Our Aptiv team delivered record financial performance, with 8% organic growth resulting from strong gains across the portfolio led by double-digit growth in our fastest-growing product lines, including active safety, infotainment and vehicle electrification."
Dominion holds Aptiv in its Global Trends Managed Fund.
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