Autoliv, Inc. (ALV) delivered earnings and revenue surprises of 18.83% and 2.84%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?
STOCKHOLM (Reuters) -Sweden's Autoliv reported fourth-quarter core earnings above analyst forecasts on Friday having restored profitability by passing higher costs on to its customers, sending its shares up almost 8%. Cost inflation related to high raw material prices have squeezed car suppliers for some time now, and chief executive Mikael Bratt said in a statement that the cost inflation seen by Autoliv in 2022 was the worst in three decades. Chief Financial Officer Fredrik Westin told Reuters that the price hikes had been across all its products and regions, though the United States and Europe were areas of particular worry.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Autoliv, Inc...