Earnings Expectations for Adient - Wall Street expects Adient to report a year-over-year decline in earnings and revenues for the quarter ended June 2024, with earnings per share (EPS) expected at $0.67, down 31.6% YoY, and revenues expected at $3.81 billion, down 6% YoY [1][2] - The consensus EPS estimate has remained unchanged over the last 30 days, reflecting analysts' collective reassessment of initial estimates [3] - The Most Accurate Estimate for Adient is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7%, indicating analysts have recently become bearish on the company's earnings prospects [6] Earnings Surprise History and Predictions - Adient delivered a positive earnings surprise of +38.46% in the last reported quarter, beating the consensus EPS estimate of $0.39 with actual earnings of $0.54 [7] - Over the last four quarters, the company has beaten consensus EPS estimates two times [7] - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has historically resulted in a positive earnings surprise nearly 70% of the time, but Adient currently carries a Zacks Rank of 5, making it difficult to predict an earnings beat [5][6] Industry Comparison - Magna, another player in the Zacks Automotive - Original Equipment industry, is expected to post earnings of $1.54 per share for the quarter ended June 2024, representing a YoY increase of 2.7%, with revenues expected at $11.12 billion, up 1.3% YoY [9] - Magna's consensus EPS estimate has been revised down by 3% over the last 30 days, and the company now has an Earnings ESP of -5.84%, combined with a Zacks Rank of 4, making it difficult to predict an earnings beat [9] - Over the last four quarters, Magna has surpassed consensus EPS estimates two times [9]

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 August 6, 2024, at 8:30 a.m. (ET) to discuss its third 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 specific telephone numbers and using the conference passcode ADIENT [1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List due to downward revisions in earnings estimates over the last 60 days [1] Company Summaries - **Adient plc (ADNT)**: An automotive seating supplier with a current year earnings estimate revised downward by 10.7% [1] - **ArcBest Corporation (ARCB)**: A freight transportation and integrated logistics services company with a current year earnings estimate revised downward by 15% [1] - **The GEO Group, Inc. (GEO)**: A company that owns, leases, and manages secure facilities, with a current year earnings estimate revised downward by 3.8% [1]

Group 1 - ARMOUR Residential REIT (ARR) primarily invests in residential mortgage-backed securities issued or guaranteed by a United States Government-chartered entity [1] - The Zacks Consensus Estimate for ARMOUR's current year earnings has been revised downward by almost 14.8% over the last 60 days [1] - Adient (ADNT) is one of the world's largest automotive seating suppliers [1] - The Zacks Consensus Estimate for Adient's current year earnings has been revised downward by 11.9% over the last 60 days [1] - Americas Gold and Silver (USAS) is a metal producer engaged in the exploration, development, operation, and acquisition of precious metal properties [1] - The Zacks Consensus Estimate for Americas Gold and Silver's current year earnings has been revised downward by 57.1% over the last 60 days [1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List due to significant downward revisions in earnings estimates over the last 60 days [1] Company Summaries - **Adient plc (ADNT)**: An automotive seating supplier with a current year earnings estimate revised downward by 14.6% [1] - **ArcBest Corporation (ARCB)**: A freight transportation and integrated logistics services company with a current year earnings estimate revised downward by 15% [1] - **Civista Bancshares, Inc. (CIVB)**: The financial holding company for Civista Bank, with a current year earnings estimate revised downward by 13.2% [1]

Group 1 - Adient plc (ADNT), an automotive seating supplier, has seen its current year earnings estimate revised downward by 15.9% over the last 60 days [1] - California BanCorp (CALB), the bank holding company for California Bank of Commerce, has experienced a 3.6% downward revision in its current year earnings estimate over the last 60 days [1] - CareTrust REIT, Inc. (CTRE), a publicly-traded real estate investment trust, has had its current year earnings estimate revised downward by 5.2% over the last 60 days [1]

Group 1 - Boot Barn Holdings, Inc. (BOOT) is a lifestyle retail chain with a current year earnings estimate revised downward by 8.2% over the last 60 days [1] - Capri Holdings Limited (CPRI) is a retailer of apparels, experiencing a 14.7% downward revision in its current year earnings estimate over the last 60 days [1] - Adient plc (ADNT) is an automotive seating supplier, with its current year earnings estimate revised downward by 16.8% over the last 60 days [1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List due to significant downward revisions in their earnings estimates over the last 60 days [1] Company Summaries - **3D Systems Corporation (DDD)**: This company specializes in 3D printing and digital manufacturing solutions. The Zacks Consensus Estimate for its current year earnings has been revised downward by 11.1% over the last 60 days [1] - **Adient plc (ADNT)**: An automotive seating supplier, Adient has seen its Zacks Consensus Estimate for current year earnings revised downward by 16.8% over the last 60 days [1] - **Allegiant Travel Company (ALGT)**: A leisure travel company, Allegiant's Zacks Consensus Estimate for current year earnings has been revised downward by 37.6% over the last 60 days [1]

Core Viewpoint - Adient reported adjusted earnings per share (EPS) of 54 cents for Q2 fiscal 2024, an increase from 32 cents in the previous year, surpassing the Zacks Consensus Estimate of 39 cents [1] Financial Performance - The company generated net sales of $3.75 billion, a decrease of 4.1% year over year, missing the Zacks Consensus Estimate of $3.83 billion [1] - Cash and cash equivalents stood at $905 million as of March 31, 2024, down from $1.11 billion as of September 30, 2023 [4] - Long-term debt was reported at $2.4 billion as of March 31, 2024 [4] - Capital expenditures totaled $69 million, compared to $56 million in the prior-year quarter [4] - During the quarter, Adient repurchased nearly 1.5 million shares for $50 million [4] Segmental Performance - The Americas segment recorded revenues of $1.66 billion, down 5.7% year over year, missing the Zacks Consensus Estimate of $1.80 billion; adjusted EBITDA increased to $80 million from $72 million [2] - The EMEA segment generated revenues of $1.37 billion, a decline of 2.2% year over year, missing the Zacks Consensus Estimate of $1.38 billion; EBITDA rose to $57 million from $53 million [3] - The Asia segment reported revenues of $742 million, down 4.1% year over year, missing the Zacks Consensus Estimate of $774 million; adjusted EBITDA fell 0.8% year over year to $112 million [3] Revised Guidance for 2024 - Adient revised its fiscal 2024 revenue guidance to a range of $14.8-$14.9 billion, down from $15.40-$15.50 billion; adjusted EBITDA is now estimated at $900-$920 million, down from $985 million [5] - Equity income is projected to be $80 million, an increase from the previous guidance of $70 million [5] - Free cash flow is anticipated to be $250 million, down from the previous guidance of $300 million [5] - Capital expenditures and cash tax are estimated between $310 million and $105 million, respectively; interest expenses are expected to be $185 million [5]

Group 1 - Atlas Energy Solutions Inc. (AESI) provides proppant and logistics services primarily in the Permian Basin of West Texas and New Mexico, with a current year earnings estimate revised down by almost 27% over the last 60 days [1] - Aegon (AEG) is an international insurance group offering life and health insurance, pension, savings, and investment products across Europe, North America, and the Caribbean, with a current year earnings estimate revised down by 11.5% over the last 60 days [1] - Adient (ADNT) is one of the largest automotive seating suppliers globally, with a current year earnings estimate revised down by 10.8% over the last 60 days [1]