Delphi Automotive raises forecasts on back of strong quarter
Delphi Automotive, a leading name in the vehicle components-maker market, has raised its full year guidance following a strong second quarter and burgeoning growth prospects in electrification and safety systems. These trends play into the ‘green revolution’ and the autonomous driving developments that are currently driving the sector’s growth. Kevin Clark, Delphi’s president and CEO, addressed these factors head on in a conference call with analysts, saying: “the transformation of the auto industry is at the heart of our strategy.”
Delphi’s share price has risen by 37% year to date
SOURCE: Yahoo Finance
Delphi raised its full year earnings forecast to a range of $6.55 - $6.75, up from a range of $6.40 - $6.70. It also expects full year revenue in the area of $16.85 billion – $17.05 billion. Previously, it had expected to bring in $16.50 billion - $16.90 billion.
Delphi is tied up in self-driving vehicles, advanced safety systems, and the electrification of the auto industry. These trends are currently driving the industry, as big players from Google to Uber look at ways to make cars autonomous, and countries from France to Britain move towards banning diesel.
The company said it remains “on track” to spin off its internal combustion engine business, which accounted for 27% of revenue this quarter, and will provide more detail at a September 27 conference in Boston.
Delphi delivered earnings of $1.71 per share for the quarter, against expectations of $1.65.
Dominion holds Delphi Automotive in its Global Trends Managed Fund.
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