Aptiv flies past analysts’ expectations to deliver strong results and optimistic outlook
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Aptiv flies past analysts’ expectations to deliver strong results and optimistic outlook

Aptiv, the world leader in making components for tomorrow’s vehicles (which will be connected, self-driving, and electric) reported better-than-expected quarterly results this week, demonstrating a fast-growing business that’s benefiting from the major trends disrupting the auto-industry. The company also upped its guidance for the rest of the year – something that played well with investors and caused its share price to climb.

Aptiv’s share price has appreciated by 14% so far this year

graph 0208 aptiv

SOURCE: Yahoo Finance

Aptiv reported second quarter earnings of $1.40 per share, beating out analysts’ estimates by 3¢, as well as its own guidance for the period ($1.33 - $1.39 per share). The company also beat the Street on revenue, which totaled $3.7 billion – a full $134 million higher than analysts had predicted, and (once more) higher than its own guidance (which topped out at $3.6 billion).

These figures were driven by a strong forward momentum in Aptiv’s underlying business. Throughout the three month period, the company won numerous business awards “focused on delivering the advanced computing platforms, software capabilities and networking architecture.” It also completed the acquisition of KUM and announced a buyout of Winchester Interconnect – both of which will strengthen Aptiv’s signal and power solutions segment.

Kevin Clark, the company’s president and CEO, made the following comment: "During the second quarter, we delivered record double-digit revenue growth, operating income, earnings per share and free cash flow. We continued to see strong new business awards, totaling $11 billion year-to-date, focused on delivering the software capabilities, advanced computing platforms and networking architecture that are making the future of mobility real. As we look to the second half of 2018, we expect our portfolio of advanced technologies to drive continued above market growth, as reflected in our increased outlook for the year."

Disclosure

Dominion holds Aptiv in its Global Trends Managed Fund


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.