Aptiv beats the Street on revenue and earnings
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Aptiv beats the Street on revenue and earnings

Aptiv is a self-driving car company at the forefront of modern auto-trends. Heavily positioned to be a front-runner in the supply of systems that enable autonomous driving and electrification, the company already has partnerships with a number of carmakers, and is pursuing growth in tomorrow’s auto-industry. This is the company’s whole mission – originally known as Delphi Automotive, that company split, leaving the ‘Delphi’ name to its traditional auto-parts business, and using Aptiv to focus on the trends defining the industry’s future. Now, the company has reported earnings that show it’s continuing to make good headway in that mission.

Aptiv shares rose by 4% over the last five days

Source: Yahoo Finance

Aptiv managed to beat the Street’s predictions on both top- and bottom-line metrics in its third quarter, which ended in September. The company said that revenue came in at $3.5 billion for the three-month period, outperforming analysts’ expectations by $63 million. The company also returned earnings of $1.24 per share for its third quarter, beating consensus estimates by 4 cents. That’s an 11% and 8% increase, respectively, in year-on-year terms.

The biggest segment of Aptiv’s business, signal and power solutions, showed strong growth – up 9% from the year-ago quarter. Revenues for that division hit the $2.5 billion mark, making up 73% of the company’s overall total. This is a critical element of the company’s business, so prolonged growth should be a comfort to investors. During the third quarter, the company also completed its acquisition of Winchester Interconnect, which is also expected to strengthen signal and power solutions going forward.

Speaking to the strength of these results, the company’s president and CEO, Kevin Clark, made the following comments on an earnings call: “In the face of softening global vehicle production, achieving the revenue, operating income and earnings guidance we provided back in July reflects the strong demand for our portfolio of technologies aligned to the safe, green and connected mega trends, as well as our flexible cost structure.”

Disclosure

Dominion holds Aptiv in its Global Trends Managed Fund.


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