Aptiv shares add 7% after beating expectations
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Aptiv shares add 7% after beating expectations

Aptiv, the auto-industry component maker with specialisations in electrification, automation, and digital connectivity for dashboard units, posted a set of financial results last week that impressed investors and analysts. The company’s share price appreciated a further 7% on the back of the results, adding to what had already been a strong first month of the year for Aptiv’s market cap.

Aptiv’s share price has increased by 28% so far this year

graph 06 aptiv

Source: Yahoo Finance

Aptiv beat the Street’s expectations by 13% on earnings, delivering $1.34 per share and increasing 5% year on year. It did similarly well in regards to revenue, posting a figure of $3.6 billion. That overshot analysts expectations by about $100 million, and grew 6% from the fourth quarter of 2017.

Aptiv’s strong results come after a quarter in which analysts expected to see it making a loss. The company has invested hard in R&D over the past 12 months, and delivered a successful automated taxi service in Las Vegas thanks to a partnership with ride-hailing firm Lyft.

Aptiv’s president and CEO, Kevin Clark, described the year positively on an earnings call, saying: “I’m pleased to report a strong finish to 2018, a testament backed visibility to drive sustained out performance even in a challenging end market. Revenue, operating profit and earnings per share all finished above the guidance we provided in October. For the full year, revenue of 14.4 billion represents 10 points of growth over market, reinforcing the strength of our portfolio of advanced technologies aligned to the safe, green and connected mega trends.”

For the first quarter of 2019, Aptiv said it expects to see adjusted earnings between 97u cents and $1.02 per share, with net sales in a range of $3.40-$3.50 billion.

Disclosure

Dominion holds Aptiv in its Global Trends Managed Fund.


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