Core Viewpoint - Autoliv (ALV) shares have underperformed significantly, declining 15.2% over the past year, contrasting with the Zacks Auto, Tires and Trucks sector's growth of 9.7% and the Zacks Automotive – Original Equipment industry's decline of 2% [1] Group 1: Performance and Market Conditions - Global light vehicle production (LVP) is projected to decline by approximately 0.5% in 2025, with notable reductions expected in North America and Europe due to inventory corrections [4] - An unfavorable shift in the LVP mix, particularly in China, is leading to a decrease in demand for ALV's higher-value products as domestic manufacturers focus on lower-content-per-vehicle models [5] - Macroeconomic uncertainties and geopolitical tensions, including tariffs and trade restrictions, are likely to disrupt supply chains and increase raw material costs, negatively impacting demand in key markets like China and Europe [6] Group 2: Company Guidance and Earnings Estimates - Autoliv anticipates organic sales growth of around 2% in 2025, an increase from the 0.4% reported in 2024, with adjusted operating margins expected to range from 10% to 10.5% [8] - The Zacks Consensus Estimate for Autoliv's first-quarter 2025 EPS is $1.87, reflecting an 8.8% decrease over the past month, while the second-quarter estimate has dropped by 7% to $2.27 [9] - The consensus estimates for Autoliv's EPS for 2025 and 2026 have also declined by 3.9% and 5.2%, now pegged at $9.70 and $11.01, respectively [9] Group 3: Recent Performance and Investment Outlook - Autoliv has beaten the Zacks Consensus Estimate for earnings in two of the last four quarters, with an average negative surprise of 2.68% [10] - Given the ongoing market challenges and downward-trending EPS estimates, the near-term prospects for ALV appear bleak, leading to a Zacks Rank of 4 (Sell) [11]

Core Insights - Autoliv Inc. reported fourth-quarter 2024 adjusted earnings of $3.05 per share, exceeding the Zacks Consensus Estimate of $2.83 but down 19% year over year [1] - The company’s net sales for the quarter were $2.62 billion, missing the Zacks Consensus Estimate of $2.71 billion and declining 4.9% year over year [1] Financial Performance - Organic sales decreased by 3.3% year over year, missing the estimated decline of 1% due to a negative regional and model light vehicle production mix [2] - Adjusted operating income was $349 million, reflecting a 4.7% year-over-year increase, with an adjusted operating margin of 13.4%, up from 12.1% in the previous year [2] Segmental Performance - Airbags and Associated Products segment sales totaled $1.76 billion, below the projection of $1.95 billion, with a 5.6% year-over-year decline [3] - Seatbelts and Associated Products segment sales reached $856 million, down 3.5% year over year but exceeding the forecast of $754.9 million [4] - Regional sales in the Americas were $786 million, missing the estimate of $800.2 million and decreasing 8.7% year over year [4] - Sales in Europe were $715 million, below the forecast of $782.7 million, down 5.3% year over year [5] - Sales in China were $587 million, missing the projection of $606.1 million, and fell 4.8% year over year [5] - Sales in the Rest of Asia totaled $527 million, increasing 1.7% year over year and surpassing the projection of $512.1 million [5] Financial Position - As of December 31, 2024, Autoliv had cash and cash equivalents of $330 million and long-term debt of $1.52 billion [6] - Operating cash flow for the quarter was $420 million, with capital expenditure of $132 million, resulting in a free cash flow of $288 million [6] - The company paid a dividend of 70 cents per share and repurchased 1.04 million shares during the quarter [6] 2025 Guidance - Autoliv forecasts organic sales growth of around 2% for 2025, compared to 0.4% reported in 2024 [7] - The adjusted operating margin is expected to be in the range of 10-10.5% [7] - Operating cash flow is anticipated to be $1.2 billion in 2025 [7]

Core Insights - Autoliv, Inc. reported revenue of $2.62 billion for Q4 2024, a year-over-year decline of 4.9% and an EPS of $3.05, down from $3.74 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $2.71 billion by 3.59%, while the EPS exceeded the consensus estimate of $2.83 by 7.77% [1] Financial Performance - Autoliv's stock has returned +9.8% over the past month, outperforming the Zacks S&P 500 composite's +2.9% change [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Sales Breakdown - Organic sales change for Airbags, Steering Wheels, and Other products was -4.1%, compared to the three-analyst average estimate of +1.8% [4] - Organic sales change for Seatbelt Products was -1.6%, against the average estimate of +0.1% [4] - Net Sales in the Americas were $786 million, below the average estimate of $810.12 million, reflecting an 8.7% year-over-year decline [4] - Net Sales in Europe were $715 million, compared to the average estimate of $758.93 million, marking a 5.3% year-over-year decline [4] - Net Sales in Asia excluding China were $527 million, slightly above the average estimate of $524.03 million, showing a 1.5% year-over-year increase [4] - Net Sales in China were $587 million, below the average estimate of $634.50 million, indicating a 4.9% year-over-year decline [4] - Sales of Seatbelt Products were $856 million, exceeding the average estimate of $839.11 million, but reflecting a 3.5% year-over-year decline [4] - Sales of Airbags, Steering Wheels, and Other products were $1.76 billion, below the average estimate of $1.88 billion, representing a 5.6% year-over-year decline [4]

Core Viewpoint - Autoliv, Inc. reported quarterly earnings of $3.05 per share, exceeding the Zacks Consensus Estimate of $2.83 per share, but down from $3.74 per share a year ago, indicating a mixed performance in earnings despite a positive surprise this quarter [1][2]. Financial Performance - The company posted revenues of $2.62 billion for the quarter ended December 2024, which was 3.59% below the Zacks Consensus Estimate and a decrease from $2.75 billion in the same quarter last year [2]. - Over the last four quarters, Autoliv has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2]. Stock Performance - Autoliv shares have increased approximately 8% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2 on revenues of $2.58 billion, while for the current fiscal year, the estimate is $10.05 on revenues of $10.88 billion [7]. - The trend of estimate revisions for Autoliv is mixed, which could change following the recent earnings report [6]. Industry Context - The Automotive - Original Equipment industry, to which Autoliv belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Autoliv's stock performance [5].

More Lives Saved More Life Lived Earnings Call Presentation 4th Quarter 2024 January 31, 2025 January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public Safe Harbor Statement* This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements include those that address activities, events or developments that Autol ...

Core Insights - The company reported record operating profit, margin, and earnings per share (EPS) for Q4 2024, despite a decline in net sales and organic sales [1][8][11] Financial Performance - Q4 2024 net sales were $2,616 million, a decrease of 4.9% compared to Q4 2023 [4] - Organic sales declined by 3.3%, underperforming against a global light vehicle production (LVP) increase of 0.4% [5] - Operating income reached a record high of $353 million, with an operating margin of 13.5%, up from 8.6% in Q4 2023 [4][5] - Adjusted operating income was $349 million, with an adjusted operating margin of 13.4%, compared to 12.1% in the previous year [4] - Diluted EPS increased by 14% to $3.10, while adjusted diluted EPS decreased by 19% to $3.05 [4][5] Full Year Guidance - The company anticipates around 2% organic sales growth for 2025, with a negative foreign exchange effect of approximately 2% on net sales [1] - Expected adjusted operating margin for 2025 is around 10-10.5% [1] Operational Highlights - The company achieved a record operating cash flow of $1,059 million for FY 2024, with Q4 operating cash flow at $420 million [5] - A total of 1.04 million shares were repurchased and retired during the quarter [5] - The company experienced a reduction in total headcount by approximately 7% [5][9] Market Dynamics - The company outperformed in Asia (excluding China) and Europe due to successful product launches and positive pricing, while facing challenges in the Americas due to dealer inventory reductions [5][10] - Sales to domestic Chinese OEMs grew by 20%, but overall performance in China was impacted by a negative LVP mix [5][10] Strategic Outlook - The company expects a challenging year for the automotive industry in 2025, with slight declines in LVP and ongoing geopolitical risks [11] - A focus on efficiency and cost control is expected to support profitability improvements towards mid-term financial targets [11]

Financial Performance - Q4 2024 net sales were $2,616 million, a decrease of 4.9% year-over-year, with a 3.3% organic sales decline [2]. - Operating income reached a record high of $353 million, representing a 49% increase compared to Q4 2023, with an operating margin of 13.5% [4]. - Consolidated sales for the full year 2024 were $10,390 million, a decrease of 0.8% compared to $10,475 million in 2023 [30]. - Operating income for the full year increased by 42% to $979 million, compared to $690 million in 2023 [39]. - Net income for Q4 2024 was $243 million, a 7.0% increase from $227 million in Q4 2023, while full-year net income rose 32% to $648 million from $489 million [55]. - Earnings per share (diluted) increased by 40% to $8.04, up from $5.72 in the previous year [39]. - Earnings per share (diluted) for Q4 2024 increased to $3.10, compared to $2.71 in Q4 2023, marking an increase of 14.4% [83]. - Adjusted net income for Q4 2024 was $240 million, down from $314 million in Q4 2023 [107]. - Net income attributable to controlling interest rose to $646 million in Q4 2024, compared to $488 million in Q4 2023, marking a 32% increase [112]. Cash Flow and Capital Management - Operating cash flow for Q4 2024 was $420 million, contributing to a record operating cash flow of $1,059 million for the full year [4]. - Operating cash flow for the full year 2024 reached $1,059 million, an increase from $982 million in 2023 [95]. - Free operating cash flow for Q4 2024 was $288 million, a decrease of 3.0% from $297 million in Q4 2023, while full-year free operating cash flow improved to $497 million from $414 million [59][66]. - Cash and cash equivalents as of December 31, 2024, were approximately $330 million, with net debt increasing to $1,554 million, up 14% from the previous year [61]. - The leverage ratio remained stable at 1.2x as of December 31, 2024, with trailing adjusted EBITDA increasing by around $97 million [65]. - Net cash provided by operating activities for the full year 2024 was $1,059 million, up from $982 million in 2023, reflecting a growth of 7.8% [85]. - The leverage ratio for Q4 2024 was 1.2, compared to 1.4 in the previous quarter, indicating improved debt management [93]. Operational Efficiency - The company reduced its indirect workforce by 1,400 since Q1 2023 as part of a structural cost reduction program [6]. - Total headcount decreased by around 7% in 2024, supporting improved profitability [9]. - Trade working capital decreased by $117 million year-over-year, with trade working capital in relation to sales improving from 11.2% to 10.7% [60]. - Total current assets decreased to $3,483 million from $3,865 million in the previous quarter, representing a decline of 9.9% [89]. - Total liabilities decreased to $5,519 million from $5,974 million in the previous quarter, a reduction of 7.6% [89]. - The number of employees decreased to 59,500 as of December 31, 2024, down from 62,900 in the previous year [112]. Market and Sales Performance - Sales to domestic Chinese OEMs grew by 20%, despite overall underperformance in the Chinese market due to a negative LVP mix [27]. - Organic sales growth was 0.4% globally, outperforming the global light vehicle production (LVP) decline of 1.2% [33]. - In the Americas, organic sales decreased by 1.7%, while Europe saw an increase of 1.4% and Asia excluding China increased by 6.6% [35]. - The company expects a challenging 2025 for the automotive industry, with a slight decline in LVP and ongoing geopolitical risks [8]. Sustainability Initiatives - The company continued to focus on sustainability as a key part of its business strategy, aligning with international frameworks and improving operational efficiency [69]. - The share of renewable electricity usage increased to 30% in the company's operations, contributing to a 15% reduction in Scope 1 and 2 GHG emissions compared to 2023 [72]. - Autoliv launched a climate accelerator program to support suppliers in meeting sustainability requirements [73]. - Autoliv's operational GHG emissions intensity improved, indicating enhanced energy efficiency measures [72]. Future Outlook and Guidance - Full year 2025 guidance includes around 2% organic sales growth and an adjusted operating margin of approximately 10-10.5% [11]. - The company plans to hold a Capital Markets Day on June 3, 2025, to discuss future strategies [9]. - Fitch Ratings assigned Autoliv a Long-Term Issuer Default Rating (IDR) of 'BBB+' with a Stable Outlook [81].

Growth Stocks and Autoliv Analysis - Investors seek growth stocks to capitalize on above-average growth in financials, which can produce exceptional returns but carry above-average risk [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing a company's real growth prospects beyond traditional attributes [2] - Stocks with the best growth features consistently outperform the market, especially those with a Growth Score of A or B and a Zacks Rank 1 or 2 [3] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - Autoliv's historical EPS growth rate is 18.3%, but the projected growth for this year is 22.7%, significantly higher than the industry average of 17.7% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to undertake new projects without raising expensive outside funds [6] - Autoliv's year-over-year cash flow growth is 43.9%, far exceeding the industry average of -1.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 1.6%, compared to the industry average of 1.3% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are favorable and strongly correlated with near-term stock price movements [8] - Autoliv has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate surging 0.2% over the past month [9] Conclusion - Autoliv has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for outperformance [10][11]

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STOCKHOLM, Jan. 8, 2025 /PRNewswire/ -- Autoliv Inc., plans to publish its Financial Report for the fourth quarter 2024 on Friday, January 31, 2025 at 12:00 Central European Time (CET).The report will be available at www.autoliv.com.In addition, a teleconference will take place the same day. Q4 2024 Earnings Call: Date: January 31, 2025 Time: 14:00 – 15:00 CET Main speaker: Mikael Bratt, President & CEO To attend by webcast, please use the link on our web or the link below:https://edge. ...