Core Insights - Autoliv, Inc. (ALV) is expected to report quarterly earnings of $2.17 per share, reflecting a 30.7% increase year over year, while revenues are forecasted at $2.57 billion, indicating a 1.1% decrease compared to the previous year [1] - Analysts have revised the consensus EPS estimate down by 0.6% over the past 30 days, highlighting a collective reassessment of projections [1] - The relationship between earnings estimate revisions and short-term stock price performance is emphasized as a critical factor for investor behavior [1] Revenue Estimates - Analysts predict 'Sales - Seatbelt Products' to reach $787.76 million, representing a year-over-year decline of 5.7% [2] - The combined sales for 'Airbags, Steering Wheels and Other' are estimated at $1.77 billion, showing a slight increase of 0.4% year over year [2] - The organic change in 'Sales - Airbags, Steering Wheels and Other' is expected to be 1.0%, down from 15% reported in the same quarter last year [2] Segment Performance - The consensus estimate for 'Sales by Segment - Organic change' is at -0.5%, a significant drop from the 11% reported in the same quarter of the previous year [3] - Autoliv shares have shown a return of -0.3% over the past month, underperforming compared to the Zacks S&P 500 composite's increase of 4.3% [3] - With a Zacks Rank of 5 (Strong Sell), ALV is anticipated to lag behind overall market performance in the near future [3]

Core Points - Autoliv Inc. plans to publish its Financial Report for Q3 2024 on October 18, 2024, at 12:00 CET [1] - A teleconference will be held on the same day, featuring Mikael Bratt, President & CEO, as the main speaker [1] - The earnings call will take place from 14:00 to 15:00 CET [1] Financial Report Details - The Q3 2024 Financial Report will be accessible on the company's website [1] - Audio replay of the conference will be available until October 18, 2025 [1] - A transcript of the conference will also be available on the investor relations section of the website [1] Participation Information - Webcast participation can be accessed via a provided link [1] - Phone registration is required to obtain a personal pin code and phone number for participation [1]

Core Points - Autoliv, Inc. has appointed Fabien Dumont as Executive Vice President & Chief Technology Officer, effective immediately [1][2] - Dumont has been with Autoliv since 1998 and previously served as Vice President Engineering in Autoliv China, contributing significantly to innovations in the Chinese automotive market [1][2] - The appointment reflects Autoliv's strategy to leverage capabilities from the fast-developing Chinese market to enhance its global operations [2] Company Overview - Autoliv is the worldwide leader in automotive safety systems, developing and marketing protective systems such as airbags, seatbelts, and steering wheels [3][4] - In 2023, Autoliv's products saved 35,000 lives and reduced over 450,000 injuries, highlighting the company's commitment to safety [3][4] - The company reported sales of US $10.5 billion in 2023 and operates with 70,000 associates across 25 countries [4]

Core Viewpoint - Autoliv, Inc. has appointed Ms. Adriana Karaboutis as an independent director to its Board of Directors, expanding the board from eleven to twelve members, effective immediately [1]. Group 1: Appointment Details - Ms. Karaboutis has a strong background in technology and leadership, having served as Group Chief Information and Digital Officer at National Grid PLC from 2017 to 2023 [2]. - She has held significant roles at Biogen Inc. and Dell, Inc., overseeing technology and business solutions [2]. - Her experience includes over 20 years at General Motors and Ford in various leadership positions related to manufacturing and information technology [3]. Group 2: Board Composition and Future Plans - The appointment of Ms. Karaboutis is seen as a valuable addition to the board during a dynamic period for Autoliv and the automotive industry, according to Jan Carlson, Chairman of the Board [4]. - Ms. Karaboutis's term will expire at the 2025 Annual General Meeting of Stockholders, at which point the board is expected to reduce back to eleven members with the retirement of Mr. Hasse Johansson [4]. Group 3: Company Overview - Autoliv is a leader in automotive safety systems, developing products such as airbags and seatbelts, and has saved 35,000 lives and reduced over 450,000 injuries in 2023 [6]. - The company reported sales of $10.5 billion in 2023 and operates with 70,000 associates across 25 countries [6].

Group 1: Electric Vehicle Market Overview - The market has adjusted growth expectations for electric vehicle (EV) sales, with ON Semiconductor and Autoliv identified as good value stocks for their growth prospects [1] - Historically, the automotive market has low single-digit growth rates, leading to low valuations that can be misleading [1] Group 2: ON Semiconductor Analysis - ON Semiconductor focuses on automotive and industrial end markets, particularly in EV and advanced driver assistance systems (ADAS) [2] - The company faced challenges this year, including reduced demand from an automotive original equipment manufacturer for silicon carbide chips [3] - CEO indicates an "L-shape" recovery in revenue, suggesting no significant bounce back is expected [4] - CFO believes underlying demand is better than current revenue growth suggests, citing inventory digestion as a factor [4] - ON Semiconductor trades at less than 19 times the Wall Street analyst consensus for full-year earnings, indicating it is undervalued for a growth company [5] Group 3: Autoliv Analysis - Autoliv holds a dominant position in the automotive passive safety market with significant global market shares in airbags (47%), seatbelts (45%), and steering wheels (40%) [6] - The company's growth is tied to light vehicle production (LVP) and its ability to increase content per vehicle (CPV), with higher-income markets showing a CPV of $330 compared to $200 in lower-income markets [6] - Management anticipates that LVP growth will primarily occur in medium- and low-income regions, potentially diluting the average global CPV [7] - Autoliv has historically outperformed its end markets, growing at 5% per annum since 1997 compared to market growth of 2.8% [8] - The stock trades at slightly less than 12 times estimated full-year earnings, with expected free cash flow of $1.82 billion over the next three years, representing over 22% of its current market cap [8]

Investment Rating - The report does not explicitly mention the investment rating for Autoliv (ALV) [1][2][3] Core Views - Autoliv's Q2 2024 revenue was $2.2 billion, up 4% YoY, with China OEM sales in China increasing by 39% YoY [1] - The company expects improved profitability in H2 2024, with adjusted operating margins projected to reach 11%-12% [2][15] - Autoliv plans to reduce indirect headcount by 2,000 in 2024, saving $50 million in related costs [2][15] Financial Performance - Q2 2024 sales were $2.6 billion, up 1% YoY, with operating income of $221 million, up 4% YoY [2][5] - Gross profit was $475 million, up 6% YoY, with a gross margin of 18.2%, up 1.3pp YoY [2][5] - Operating cash flow was $340 million, down $39 million YoY [2][6] - Adjusted EBITDA increased by $11 million YoY [5] Market and Capacity - Sales distribution: Asia 37%, Americas 34%, Europe 29% [2] - China OEM sales accounted for 38% of total China sales, up 39% YoY and 25% QoQ [2][18] - Light vehicle production declined 1% YoY, with strong performance in Japan, other Asian regions, and Europe [2][16] Cost Improvements - Direct labor efficiency improvements and indirect labor reductions contributed to a 0.3pp increase in gross margin YoY and QoQ [2][5] - The company expects to save $50 million in 2024 through headcount reductions [2][15] Customer Collaboration - Autoliv is strengthening partnerships with fast-growing Chinese OEMs and has signed a strategic cooperation agreement with XPeng Huitian [2][16] Shareholder Returns - Over the past 12 months, Autoliv returned approximately $810 million to shareholders through dividends and share repurchases [2][12] - The company has reduced its outstanding shares by nearly 9% since initiating its share repurchase program in 2022 [12] Sustainability - Autoliv is collaborating with the UN Road Safety Fund to enhance motorcycle safety and aims to save 100,000 lives annually [2][13] - The company has eliminated SF6 in steering wheel production and is increasing the use of renewable energy and 100% recycled polyester for airbag cushions [14] Guidance - Autoliv expects organic sales growth of 2% in 2024, with adjusted operating margins of 9.5%-10% and operating cash flow of approximately $1.1 billion [2][15] - The company forecasts a tax rate of around 28% for 2024 [15]

Core Viewpoint - Autoliv, Inc. reported earnings results on July 19, 2024, missing both top- and bottom-line estimates, leading to a significant decline in share price, which had already been falling since late May 2024 [1][19]. Earnings Results - Net sales decreased by 1.1% year-over-year to $2.61 billion, approximately $130 million below analyst estimates [2]. - Adjusted EPS fell by 3% compared to the previous year, reaching $1.87, which is $0.34 below expectations [2]. Sales Performance - Organic sales growth was 0.7%, outperforming global light vehicle production (LVP) by 1.4% [4][7]. - The company performed well in Asia (excluding China) and Europe, but underperformed in China and the Americas due to lower LVP driven by weaker vehicle sales [6][9]. Profitability - Despite declining sales, Autoliv improved its profitability, with gross profit margin increasing to 18.2% from 17.0% year-over-year, and adjusted operating profit margin rising to 8.5% from 8.0% [13][12]. - The primary driver of profitability improvements was cost reduction measures, including a 5% reduction in headcount [13][12]. Guidance and Outlook - For the full year 2024, the company anticipates around 2% organic sales growth, with a negative FX effect of about 1% on net sales [10]. - The adjusted operating margin is expected to be between 9.5% and 10.0%, with operating cash flow projected at approximately $1.1 billion [10]. Valuation - Autoliv's stock is currently trading at a significant discount compared to the consumer discretionary sector median and its own historical valuation, making it attractive from a valuation perspective [14][18]. - The company has been returning value to shareholders through dividends and share buybacks, with a current quarterly dividend of $0.68, corresponding to an annual yield of 2.8% [16][18]. Conclusion - The stock price decline is attributed to slowing sales, a challenging macroeconomic environment, unfavorable FX developments, and missing analyst estimates [19]. - Potential interest rate cuts in the U.S. could positively impact consumer confidence and demand for automobiles, which may benefit Autoliv [19]. - Overall, the stock is considered attractive for long-term investors [20].

Core Viewpoint - Autoliv, Inc. is currently rated as a Hold due to disappointing Q2 performance and unfavorable 2024 guidance, although there are potential improvements expected from cost management and sales growth in the Chinese market [1][9]. Financial Performance - Autoliv's Q2 2024 revenue decreased by 1.1% year-over-year to $2,605 million, marking a 4.6% miss against market expectations of $2.73 billion [3]. - The company's normalized earnings per share (EPS) for Q2 2024 was $1.87, reflecting a 2.9% decline year-over-year and a 15.5% shortfall compared to analysts' consensus of $2.21 [3][4]. - Autoliv's operating margin for Q2 2024 was 4.84%, which was 138 basis points below the consensus forecast, with a year-over-year improvement narrowing from 252 basis points in Q1 2024 to 44 basis points [4]. Full-Year Guidance - The company revised its FY 2024 organic revenue growth guidance down from 5% to 2%, and the operating margin guidance was lowered from 10.5% to 9.75% [6]. - Autoliv's updated outlook assumes a global light vehicle production decline of around 3%, which is worse than the previously expected 1% decline, negatively impacting sales and operating margins [6]. Cost Management Initiatives - Autoliv is on track with its structural cost reduction activities, aiming to double annual cost savings from $50 million this year to $100 million next year, and eventually to $130 million [7]. - The company's gross margin improved by 1.3 percentage points quarter-over-quarter and 1.2 percentage points year-over-year to 18.2% in Q2 2024, indicating progress in cost management [7]. Market Position in China - Autoliv's sales in China from domestic OEMs increased to 38% in Q2 2024, up from 20% in Q1 2022, reflecting a strategic shift towards domestic manufacturers [8]. - The company reported a 39% year-over-year and 25% quarter-over-quarter increase in sales generated from Chinese OEMs, suggesting a potential for improved performance in the Chinese market [8]. Valuation Insights - Autoliv is currently trading at a normalized P/E of 11.1 times, with a consensus FY 2023-2028 normalized EPS CAGR forecast of 12.6 times, resulting in a PEG ratio of 0.88 times, indicating a 12% discount to a fair PEG multiple of 1 [9].

Core Insights - Autoliv Inc. reported second-quarter 2024 adjusted earnings of $1.87 per share, missing the Zacks Consensus Estimate of $2.44 and reflecting a 3% year-over-year decline [1] - The company’s net sales for the quarter were $2.61 billion, falling short of the Zacks Consensus Estimate of $2.77 billion and decreasing by 1.1% year over year [1] - Organic sales increased by 0.7% year over year but were below the expected 5.6% due to reduced light vehicle production in the Americas and China [1] Segmental Performance - Airbags and Associated Products segment sales totaled $1.75 billion, missing projections of $1.87 billion and declining by 0.6% year over year, with notable declines in passenger and knee airbags [2] - Seatbelts and Associated Products segment sales reached $858 million, down 2.2% from the prior year and below the expected $909 million, primarily due to decreased organic sales in the Americas and China [2] - Regional sales in the Americas were $893 million, missing estimates of $971.3 million and decreasing by 2.6% year over year [2] - European sales totaled $761 million, missing forecasts of $787.7 million but increasing by 1.4% year over year [2] - Sales in China were $468 million, below projections of $525.3 million and down 5.9% year over year [3] - Sales in the Rest of Asia amounted to $483 million, up 2.6% year over year but missing the expected $498 million [3] Financial Position - As of June 30, 2024, Autoliv had cash and cash equivalents of $408 million and long-term debt of $1.54 billion [4] - The operating cash flow for the quarter was $340 million, with capital expenditures of $146 million, resulting in a free cash flow of $194 million [4] - The company paid a dividend of 68 cents per share and repurchased $1.31 million shares during the quarter [4] Revised 2024 Guidance - Autoliv revised its full-year 2024 organic sales growth forecast to around 2%, down from the previous expectation of 5% [5] - The adjusted operating margin is now anticipated to be in the range of 9.5-10%, reduced from the earlier projection of 10.5% [5] - Operating cash flow expectations for 2024 have been lowered to $1.1 billion from $1.2 billion [5]

Core Insights - Autoliv, Inc reported worse-than-expected second-quarter financial results, with a sales decline of 1.1% year-on-year to $2.605 billion, missing the analyst consensus estimate of $2.74 billion [1] - Adjusted EPS of $1.87 also fell short of the analyst consensus estimate of $2.23 [1] - The company lowered its FY24 organic sales growth outlook from 5% to around 2% and adjusted operating margin guidance from 10.5% to around 9.5% - 10% [2] Financial Performance - Second-quarter FY24 sales were $2.605 billion, a decline of 1.1% year-on-year [1] - Adjusted EPS was reported at $1.87, missing the expected $2.23 [1] - Operating cash flow is expected to be $1.1 billion [2] Market Reaction - Autoliv shares fell by 10.1%, closing at $97.66 following the announcement [2] - Analysts adjusted their price targets, with Baird maintaining a Neutral rating and lowering the target from $128 to $111, while B of A Securities maintained a Buy rating and reduced the target from $145 to $133 [2] Management Commentary - The President and CEO, Mikael Bratt, stated that the company remains on track with strategic initiatives but faced lower-than-expected light vehicle production due to weaker sales and inventory adjustments, particularly in June [1]