Aptiv's (APTV) Q2 Earnings Miss Estimates, Decline Y/Y

Aptiv PLC APTV reported lower-than-expected second-quarter 2022 results.

Adjusted earnings of 22 cents per share missed the Zacks Consensus Estimate by 64.5% and declined 63.3% on a year-over-year basis. The bottom line was hurt by the adverse impacts of pandemic lockdowns in China, continued global inflationary pressures and the worldwide semiconductor shortage.

Revenues of $4.1 billion lagged the consensus mark by 1% but increased 7% year over year. The top line registered 21% growth in North America, 4% in Europe and 2% in Asia. Revenues declined 2% in China and 30% in South America.

Aptiv’s shares have surged 69.9% in the past year against a 14% loss in the industry it belongs to.

Other Quarterly Numbers

Signal and Power Solutions’ revenues of $3 billion were up 7% year over year. Advanced Safety and User Experience revenues increased 6% year over year to $1 billion.

Adjusted operating income came in at $213 million, down 37% from the figure reported in the year-ago quarter. Adjusted operating income margin came in at 5.3%, down 360 basis points year over year.

Aptiv exited the quarter with cash and cash equivalents balance of $4.7 billion compared with the prior quarter’s $4.9 billion. Long-term debt was $6.4 billion compared with $6.5 billion at the end of the previous quarter.

Total available liquidity at the end of the quarter was $7.1 billion compared with $7.4 billion recorded at the end of the prior quarter. During the quarter, net cash generated from operating activities was $95 million.

2022 Outlook

The company expects revenues in the range of $17-$17.3 billion, below the current Zacks Consensus Estimate of $17.76 billion.

Adjusted EPS is expected between $3.05 and $3.55, below the current Zacks Consensus Estimate of $3.97.

Adjusted operating income margin is anticipated to be between 9% and 9.7%. Capital expenditures are expected to be at $800 million.

Adjusted EBITDA margin is expected to be between 12.7% and 13.4%. Adjusted effective tax rate is expected to be 13%.

Currently, Aptiv carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aptiv PLC Price, Consensus and EPS Surprise

Aptiv PLC price-consensus-eps-surprise-chart | Aptiv PLC Quote

Performance of Some Other Business Services Companies

Equifax EFX reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings IQV reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group OMC reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.

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