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Andreas in Insider trading,

Delphi is up after strong reporting

Delphi Automotive (DLPH), a major manufacturer of automotive components, recently released a strong report for 3Q15. Revenue (taking into account devaluation effects) rose 6% y-o-y to USD 3.63 bn. North American division reported the highest revenue growth (+9% taking into account devaluation effects). Adjusted EPS increased 13% y-o-y to USD 1.28. The company bought back 5.3 mn shares worth USD 406 mn in the reporting period and paid quarterly dividend of 25 cents, yielding 1.2%. Delphi continues its aggressive activity on the M&A market. The company sold its stake in Korea Delphi Automotive Systems in Q3 and acquired Control-Tec LLC, one of the leading suppliers of telematic cloud technologies. This acquisition will allow the company to optimize performance of all divisions of the company.

I am upbeat about the company’s mid-term prospects. In my opinion, Delphi will continue to improve its financial performance due to recovery of the global economy and the company’s new acquisitions. All this, coupled with buyback program and generous dividends will boost Delphi shares in the short-term.