Group 1 - Adient reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.51 per share a year ago, resulting in an earnings surprise of 21.43% [1] - The company posted revenues of $3.56 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.25%, although this is a decrease from $3.73 billion in the same quarter last year [2] - Adient's shares have declined approximately 45.3% year-to-date, contrasting with the S&P 500's gain of 25.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $3.61 billion, and for the current fiscal year, it is $2.67 on revenues of $14.7 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Q4 2024 revenue was $3,562M, a decrease of 4% year-over-year, with a full-year revenue of $14,688M, down 5% compared to FY 2023[2] - Q4 2024 adjusted EBITDA was $235M, flat year-over-year, while full-year adjusted EBITDA totaled $880M, reflecting a 6% decrease from FY 2023[3] - Net sales for the three months ended September 30, 2024, were $3,562 million, a decrease of 4.5% compared to $3,729 million for the same period in 2023[18] - Gross profit for the three months ended September 30, 2024, was $245 million, down from $250 million in the prior year, reflecting a decline of 2%[18] - Net income attributable to Adient for the three months ended September 30, 2024, was $79 million, a decrease of 41.5% from $135 million in the same period last year[18] - Diluted earnings per share for the three months ended September 30, 2024, were $0.91, compared to $1.42 for the same period in 2023, representing a decline of 36%[18] - Adjusted EBITDA for the twelve months ended September 30, 2024, was $880 million, down from $938 million in the previous year, indicating a decrease of 6.2%[29] - Adjusted net income attributable to Adient for the twelve months ended September 30, 2024, was $166 million, consistent with $205 million in the previous year[30] Cash Flow and Debt - Free cash flow for FY 2024 was $277M, with $275M returned to shareholders through share repurchases, equating to approximately 10% of shares outstanding at the beginning of FY 2024[3] - Cash provided by operating activities for the three months ended September 30, 2024, was $263 million, compared to $294 million in the same period of 2023, reflecting a decrease of 10.6%[20] - Cash used in investing activities for the three months ended September 30, 2024, was $(70) million, compared to $(65) million in the same period of 2023[20] - The company experienced a cash increase of $55 million for the three months ended September 30, 2024, compared to an increase of $202 million in the same period of 2023[20] - Net debt as of September 30, 2024, was $1,460 million, slightly up from $1,425 million a year earlier, indicating a 2.5% increase[39] - Total debt as of September 30, 2024, was $2,405 million, down from $2,535 million a year earlier, a reduction of 5.1%[39] - Gross debt and net debt as of September 30, 2024, were approximately $2.4B and $1.5B, respectively, with cash and cash equivalents of $945M[1] Operational Initiatives - Adient's automation initiatives include an AI welding inspection tool and a joint development agreement with Paslin to enhance efficiency in traditional sewing operations[3] - The company launched a Global Water Initiative, resulting in 235 water-related continuous improvement projects that conserve over 53,000 cubic meters of water annually[11] - Adient joined the RACE initiative to improve recycling methods for automotive plastics, aiming to increase recycling rates by up to 75%[13] - Adient plans to continue restructuring actions to align with market conditions and improve operational efficiencies in response to declining automotive production volumes[3] Future Outlook - For FY 2025, Adient expects consolidated sales in the range of $14.1B to $14.4B and adjusted EBITDA between $850M and $900M, anticipating flat performance despite lower production volumes[9] - Interest expense for FY 2025 is forecasted at approximately $185M, with cash taxes expected to be around $105M[9] Segment Performance - Adjusted EBITDA for the Americas segment was $116 million with a margin of 6.7%, compared to $100 million and a margin of 5.4% in the same quarter of 2023[23] - The EMEA segment's adjusted EBITDA margin decreased to 2.5% in Q4 2024 from 4.1% in Q4 2023[23] - The Americas segment's adjusted EBITDA for the twelve months ended September 30, 2024, was $375 million, with a margin of 5.5%[24] Non-GAAP Measures - Adient's management emphasized the importance of non-GAAP financial measures, including Adjusted EBITDA, to provide supplemental information regarding financial trends[17] - The company is focused on evaluating its ongoing operations through non-GAAP measures to provide supplemental information regarding financial and business trends[28]

Financial Performance - Adient reported Q4 GAAP net income of $79 million and diluted EPS of $0.91, with adjusted EPS of $0.68 [2] - Q4 adjusted EBITDA was $235 million, remaining flat year-over-year, while the adjusted EBITDA margin increased by 30 basis points to 6.6% [2] - For the full fiscal year 2024, Adient generated $277 million in free cash flow and returned $275 million to shareholders through share repurchases, alongside paying down approximately $130 million in debt [2] Debt and Cash Position - As of September 30, 2024, Adient's gross debt and net debt were approximately $2.4 billion and $1.5 billion, respectively, with cash and cash equivalents totaling $945 million [2] Future Outlook - Looking ahead to fiscal year 2025, Adient anticipates approximately flat adjusted EBITDA, with business performance expected to offset lower volumes, leading to flat to improved total margins [2]

Core Viewpoint - Adient (ADNT) is expected to report quarterly earnings of $0.56 per share, reflecting a 9.8% increase year-over-year, while revenues are forecasted to decline by 6.6% to $3.48 billion [1] Earnings Estimates - There has been a downward revision of 7.6% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Forecasts - Analysts project 'Net Sales- Asia' to reach $715.33 million, a decrease of 4.4% year-over-year [5] - 'Net Sales- Americas' is expected to be $1.74 billion, indicating a year-over-year decline of 5% [5] - 'Net Sales- EMEA' is forecasted to be $1.07 billion, reflecting a 9.2% decrease year-over-year [5] EBITDA Projections - 'Adjusted EBITDA- Americas' is projected at $89.61 million, down from $100 million reported in the same quarter last year [6] - 'Adjusted EBITDA- Asia' is expected to be $123.70 million, an increase from $113 million reported in the same quarter of the previous year [6] - 'Adjusted EBITDA- EMEA' is anticipated to be $27.91 million, significantly lower than the $48 million reported in the same quarter last year [7] Stock Performance - Adient shares have decreased by 7.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.2% [7] - With a Zacks Rank 3 (Hold), ADNT is expected to closely follow overall market performance in the near term [7]

Core Insights - Adient has entered into a joint development agreement with Paslin to enhance automation solutions in automotive seating production [1][2][3] Group 1: Agreement Details - The joint development agreement aims to leverage the expertise of both companies to create innovative automation solutions for Adient's traditional sewing operations and future product offerings [3][4] - The collaboration will focus on developing high-quality, low-cost solutions such as automated sewing cells with integrated robotics to improve accuracy and efficiency in manufacturing processes [4][5] Group 2: Company Profiles - Adient is a global leader in automotive seating, employing over 70,000 people across 29 countries and operating more than 200 manufacturing plants [6] - Paslin, founded in 1937, specializes in automation solutions and emphasizes a customer-centric approach to align projects with client ambitions [7]

Company Overview - Adient (ADNT) is expected to report quarterly earnings of $0.56 per share, reflecting a year-over-year increase of +9.8% despite anticipated revenues of $3.48 billion, which is a decrease of 6.6% from the previous year [3][10] - The consensus EPS estimate has been revised down by 7.61% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] Earnings Expectations - The upcoming earnings report is scheduled for November 8, and the stock price may increase if actual results exceed expectations, while a miss could lead to a decline [2][10] - The Earnings ESP (Expected Surprise Prediction) for Adient is -8.52%, suggesting a lower Most Accurate Estimate compared to the Zacks Consensus Estimate, complicating predictions of an earnings beat [10] Historical Performance - In the last reported quarter, Adient was expected to post earnings of $0.67 per share but only achieved $0.32, resulting in a surprise of -52.24% [11] - Over the past four quarters, Adient has only beaten consensus EPS estimates once, indicating a challenging track record [12] Industry Context - American Axle & Manufacturing (AXL), another player in the automotive sector, is expected to report earnings of $0.01 per share, showing a year-over-year change of +109.1%, with revenues projected at $1.51 billion, down 2.5% from the previous year [16] - Despite a significant downward revision of 337.8% in the consensus EPS estimate for American Axle, it has a Zacks Rank of 2 (Buy), which may influence its earnings performance [17]

Core Insights - Adient plc is a leading automotive seating supplier with a strong international presence and established relationships with major global OEMs [1][2] Group 1: Company Performance - Adient's diverse customer base and international operations have strengthened its market position, with a focus on launch execution to secure new business [2] - The company has a competitive advantage due to its strong relationships with Japanese and Asian OEMs, which are expected to drive opportunities in hybrid and battery electric vehicle launches [3] - Adient's anticipated fiscal 2024 revenues are projected to be around $14.6 billion, a decrease from the previous estimate of $14.8-$14.9 billion due to declining light vehicle production and unfavorable customer program mix [4] Group 2: Investment and Competition - Rising competition necessitates significant investments in technology and new products, with Adient planning to spend $285 million on capital expenditures in fiscal 2024, up from $252 million in fiscal 2023 [5] - The company faces competition from other automotive suppliers and OEMs, including Lear Corporation and Magna International Inc, which may impact its market share and profitability [5]

Company Overview - Adient is a global leader in automotive seating with over 70,000 employees across 29 countries [2] - The company operates more than 200 manufacturing and assembly plants worldwide [2] - Adient produces and delivers automotive seating for all major OEMs, covering the entire seat-making process from research and design to engineering and manufacturing [2] Upcoming Financial Event - Adient will host a conference call on November 8, 2024, at 8:30 a.m. (ET) to discuss its fourth quarter fiscal 2024 financial results [1] - A live webcast of the call and presentation materials will be available on the Adient Investor Relations website [1] - Participants can join the call by dialing 888-566-1827 (U.S.) or 773-799-3976 (international) 15 minutes prior to the start time [1]

Core Viewpoint - Adient's recent earnings report showed a significant decline in both earnings and revenue, leading to a downward revision of guidance for fiscal 2024, indicating potential challenges ahead for the company [2][6]. Financial Performance - Adient reported adjusted earnings per share (EPS) of 32 cents for Q3 fiscal 2024, down from 98 cents in the same period last year, and missed the Zacks Consensus Estimate of 67 cents [2]. - The company generated net sales of $3.72 billion, an 8% decrease year over year, and also missed the Zacks Consensus Estimate of $3.81 billion [2]. Segmental Performance - The Americas segment recorded revenues of $1.74 billion, an 8.6% decline year over year, missing the Zacks Consensus Estimate of $1.76 billion, but adjusted EBITDA increased to $99 million from $95 million [3]. - The EMEA segment's revenues were $1.29 billion, down 10.4% year over year, missing the Zacks Consensus Estimate of $1.35 billion, with adjusted EBITDA dropping significantly to $25 million from $103 million [4]. - The Asia segment reported revenues of $712 million, a 4% decline year over year, missing the Zacks Consensus Estimate of $729 million, while adjusted EBITDA rose 1% to $101 million [4]. Financial Position - As of June 30, 2024, Adient had cash and cash equivalents of $890 million, down from $1.11 billion as of September 30, 2023 [5]. - Long-term debt stood at $2.4 billion, with capital expenditures totaling $70 million compared to $60 million in the prior-year quarter [5]. Revised Guidance - Adient revised its fiscal 2024 revenue guidance to $14.6 billion, down from the previous estimate of $14.80-$14.90 billion, and adjusted EBITDA is now estimated at $870 million, down from $900-$920 million [6]. Market Position - Adient has a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [9]. - The company has an average Growth Score of C and a Momentum Score of D, but a strong value score of A, placing it in the top quintile for this investment strategy [8].

证 券 研 究 报 告 安道拓（ADNT）FY24Q3 业绩点评及业绩说明会纪要 会议时间：2024 年 8 月 6 日 EMEA 地区盈利承压，亚太区较稳健 会议地点：电话会议 ❖ 事项： 2024 年 8 月 6 日安道拓发布 2024 财年第三财季报告，并召开业绩说明会。公 司 FY2024Q3 截至 2024 年 6 月 30 日，与自然季度 CO2024Q2 相近，以下表 述均为自然季度。 ❖ 评论： 1. 营收： 1) 24Q2 公司营收约 37 亿美元、同比-8%，其中销量和定价下降影响 2.85 亿 美元，汇率变动影响 0.54 亿美元； 2) 24Q2 美洲区营收同比下降 8%，主要受销量减少和产品结构变化的影响； 3) 24Q2 EMEA 地区营收同比下降 9%，主要受市场需求疲软、客户产量下 降的影响； 4) 24Q2 亚洲区营收同比增长 1%，其中中国营收同比增长 6%； 5) 24Q2 公司合并前的座椅收入经外汇调整后同比增长 8%。 2. 盈利： 1) 24Q2 公司调整后净利润为 2900 万美元、同比-69%； 2) 24Q2 公司调整后 EBITDA 为 2.02 亿美元、同 ...