Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Delphi Automotive (DLPH) Q3 Earnings Beat Estimates, Up Y/Y

Delphi Automotive PLC DLPH posted $1.66 per share of adjusted earnings in the third quarter of 2017, up from $1.5 earned in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.56.

Adjusted net income increased to $443 million from $409 million a year ago. This figure includes the advantageous impact of reduced share count and lower tax rate.

Revenues were $4.33 billion and surpassed the Zacks Consensus Estimate of $4.09 billion.

Delphi Automotive PLC Price, Consensus and EPS Surprise

The top line increased 6% year over year, excluding the impact of currency exchange, commodity movements and divestitures. This upside was led by improved performances across South America (25%), Europe (6%) and Asia (19%), partly offset by a decline of 8% in North America.

Adjusted operating income rose to $566 million from $534 million in the third quarter of 2016. Adjusted operating margin was 13.1%, consistent with the year-ago quarter. This reflects sales growth of the company as well as the positive impact of its cost-reduction initiatives. However, growth-oriented investments and Mechatronics divestiture partly offset this upside.

Segment Details

In the Electrical/Electronic Architecture segment, revenues inched up 1% to $2.3 billion in the reported quarter. Also, adjusted operating income gained 6% to $336 million.

In the Powertrain Systems segment, revenues rose 12% to $1.2 billion. Adjusted operating income rallied 23% to $150 million.

The Electronics and Safety segment’s revenues increased 11% to $845 million. However, adjusted operating income declined 16% to $80 million.

Share Repurchases

In third-quarter 2017, Delphi Automotive repurchased 1.02 million shares for approximately $95 million. Following this, the company had approximately $989 million available for future repurchases under its current share buyback program.

Financial Position

As of Sep 30, 2017, Delphi Automotive had cash and cash equivalents of $557 million compared with $838 million as of Dec 31, 2016. Total long-term debt increased to $4.9 billion as of Sep 30, 2017 compared with $4 billion as of Dec 31, 2016.

At the end of nine months of fiscal 2017, operating cash flow decreased to $1.1 billion from $1.3 billion during the same period in 2016. Again in the same time frame, capital expenditure totaled $591 million compared with $614 million a year ago.

Outlook

For 2017, Delphi Automotive increased its revenue expectation to $17.35-$17.45 billion compared with the previous expectation of $16.85-$17.05 billion. Adjusted earnings per share are expected in the range of $6.7-$6.8 compared with the previous guidance of $6.55-$6.75.

Zacks Rank & Key Picks

Delphi Automotive currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the auto space include Daimler AG DDAIF, Cummins Inc. CMI and Ford Motor Company F. All stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Daimler has an expected long-term growth rate of 2.8%.

Cummins has an expected long-term growth rate of 12.4%.

Ford has an expected long-term growth rate of 10.7%.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ford Motor Company (F): Free Stock Analysis Report
 
Daimler AG (DDAIF): Free Stock Analysis Report
 
Delphi Automotive PLC (DLPH): Free Stock Analysis Report
 
Cummins Inc. (CMI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.