Core Insights - Aptiv PLC reported mixed fourth-quarter 2024 results, with adjusted earnings per share of $1.75 beating the Zacks Consensus Estimate by 5.4% and increasing 25% year over year, while revenues of $4.9 billion missed the estimate and decreased slightly year over year [1] Financial Performance - Adjusted revenues declined 1% year over year, with a notable 8% decline in Europe, flat performance in South America, and a 3% growth in both North America and Asia, including a 4% growth in China [2] - Signal and Power Solutions' revenues were $3.5 billion, down 1% year over year, while the Advanced Safety and User Experience segment saw a 2% increase to $1.4 billion [3] - Adjusted operating income was $623 million, up 3.8% year over year, with an adjusted operating income margin of 12.2%, reflecting a 50 basis points increase [3] Cash Flow and Debt - At the end of the quarter, the company had cash and cash equivalents of $1.6 billion, up from $1.1 billion in the previous quarter, while long-term debt decreased to $7.8 billion from $8.3 billion [4] - Total available liquidity was $3.6 billion, down from $3.9 billion in the prior quarter, with $1.1 billion generated from operating activities [4] Future Outlook - For Q1 2025, Aptiv expects revenues between $4.635 billion and $4.835 billion, and adjusted EPS between $1.4 and $1.6, both lower than current Zacks Consensus Estimates [5] - For the full year 2025, revenues are expected to be between $19.6 billion and $20.4 billion, with adjusted EPS between $7 and $7.6, both higher than current Zacks Consensus Estimates [6] - The company anticipates an adjusted operating income margin between 11.9% and 12.3%, and capital expenditure of $880 million [6]

Financial Data and Key Metrics Changes - Aptiv reported fourth quarter revenue of $4.9 billion, a decrease of 1% year-over-year, primarily due to production schedule weaknesses at select OEMs in Europe and China [7][28] - Operating income for the quarter was $623 million, reflecting strong operational performance and cost reduction initiatives, leading to a 25% increase in earnings per share [7][29] - Operating cash flow reached a record $1.1 billion, enabling accelerated deleveraging [8][29] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues increased by 2%, driven by double-digit growth in North America, while user experience revenues declined due to the roll-off of legacy programs [15][32] - Signal and Power Solutions segment revenues declined by 3%, impacted by lower vehicle production schedules, although non-auto markets showed growth [19][34] - New business bookings reached a record of $31 billion, with significant contributions from both ASUX and Signal and Power Solutions segments [10][12] Market Data and Key Metrics Changes - Revenue from local Chinese OEMs grew by 16%, reflecting strong commercial traction in the transition to software-defined vehicles [10][31] - North America saw a 3% revenue increase, while Europe experienced an 8% decline due to slower growth in electrified vehicle platforms [30][36] - China revenue mix for 2024 was 53% from local OEMs, indicating a shift towards domestic players [31] Company Strategy and Development Direction - The company is focused on separating the electrical distribution systems business to create two independent entities, enhancing strategic and operational focus [20][21] - Aptiv aims to capitalize on megatrends such as electrification, automation, and connectivity, positioning itself to address evolving customer needs [23][25] - The company plans to optimize its cost structure and pursue strategic capital deployment opportunities, including debt paydown and potential M&A [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of geopolitical factors and trade policies on supply chains and vehicle production [23][36] - The outlook for 2025 includes a conservative estimate for North American vehicle production, with expectations of a 3% decline in global vehicle production [36][39] - Management remains confident in the growth of electric vehicles and advanced ADAS solutions, despite the uncertain environment [24][39] Other Important Information - The company achieved significant technology milestones in 2024, including awards for advanced safety systems and software solutions [8][10] - Aptiv's investment in Wind River's commercial and product organization is expected to drive revenue growth in 2025 [17][18] Q&A Session Summary Question: Regarding the conservative outlook for North America - Management acknowledged the need for a conservative approach due to geopolitical dynamics and high inventory levels, particularly in North America [51][52] Question: Changes in customer mix in China - Management noted a significant increase in share with local Chinese OEMs, expecting to reach market parity by early 2026 [56][57] Question: Additional areas of conservatism in the outlook - Management highlighted a more conservative outlook for EV growth in Europe, with expectations of lower revenue growth compared to market forecasts [61][62] Question: Coordination with OEMs regarding tariffs - Management confirmed good coordination with OEMs to address potential tariff impacts and supply chain challenges [68][69] Question: Expectations for EDS post-spin-off - Management expects stable revenue for EDS in 2025, with growth driven by EV adoption and market share gains [106][108]

Core Insights - For the quarter ended December 2024, Aptiv PLC reported revenue of $4.91 billion, a slight decrease of 0.2% year-over-year, while EPS increased to $1.75 from $1.40 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.88 billion by 0.56%, and the EPS surpassed the consensus estimate of $1.66 by 5.42% [1] Revenue and Earnings Performance - Net sales from Eliminations and Other were reported at -$15 million, which is worse than the estimated -$11.92 million, reflecting a year-over-year increase of 36.4% [4] - Net Sales for Signal and Power Solutions reached $3.54 billion, slightly above the average estimate of $3.51 billion, showing a year-over-year decline of 0.9% [4] - Net Sales for Advanced Safety and User Experience were $1.38 billion, slightly below the average estimate of $1.39 billion, indicating a year-over-year increase of 1.8% [4] Operating Income Metrics - Adjusted Operating Income for Advanced Safety and User Experience was reported at $193 million, exceeding the average estimate of $168.38 million [4] - Adjusted Operating Income for Signal and Power Solutions was $430 million, slightly below the average estimate of $435.46 million [4] Stock Performance - Shares of Aptiv have returned +0.8% over the past month, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - APTIV PLC reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, and up from $1.40 per share a year ago, representing an earnings surprise of 5.42% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - APTIV HLDS LTD's revenues for the quarter ended December 2024 were $4.91 billion, surpassing the Zacks Consensus Estimate by 0.56%, although this is a slight decrease from year-ago revenues of $4.92 billion [2] Group 2: Stock Performance and Outlook - APTIV HLDS LTD shares have increased by approximately 1.3% since the beginning of the year, compared to the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $4.84 billion, and for the current fiscal year, it is $6.87 on revenues of $19.93 billion [7] Group 3: Industry Context - The Technology Services industry, to which APTIV HLDS LTD belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - APTIV HLDS LTD currently holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

February 6, 2025 APTIV Fourth Quarter 2024 Earnings Call Forward-Looking Statements This presentation, as well as other statements made by Aptiv PLC (the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may caus ...

Business Separation and Strategic Focus - Aptiv plans to separate its Electrical Distribution Systems (EDS) business through a tax-free spin-off, creating two independent companies[1][2] - The separation aims to enhance strategic focus, capitalize on market opportunities, and create value for shareholders of both Aptiv and EDS[3][4] - The separation transaction is targeted for completion by March 31, 2026, subject to final board approval and other customary conditions[10] Financial Projections for Aptiv - The new Aptiv is expected to achieve mid-to-high single-digit revenue growth, low-to-mid teens GAAP operating income margins, and high-teens-to-low-twenties Adjusted EBITDA margins in the medium term[6] - Aptiv estimates 2024 revenues of $12.1 billion, $1.4 billion in GAAP operating income, and $2.3 billion in Adjusted EBITDA, excluding the EDS business[7] - Aptiv affirmed its full-year 2024 outlook, with fourth-quarter 2024 financial results to be released on February 6, 2025[11] Financial Projections for EDS - EDS is expected to generate mid-single-digit revenue growth, mid-to-high single-digit GAAP operating income margins, and high-single to low-double-digit Adjusted EBITDA margins in the medium term[9] - EDS estimates 2024 revenues of $8.3 billion, $0.4 billion in GAAP operating income, and $0.8 billion in Adjusted EBITDA, excluding the Aptiv business[9] Strategic Focus of the New Aptiv - The new Aptiv will focus on advanced software, hardware, compute, and interconnect solutions aligned with global mega trends like advanced safety, electrification, and digitalization[5] Strategic Focus of EDS - EDS will leverage its global scale and localized capabilities to optimize vehicle architecture systems, particularly for the growing electric vehicle market[8]

Core Viewpoint - Aptiv PLC (APTV) is expected to report its fourth-quarter 2024 results on February 6, with a strong history of earnings surprises, averaging 10.7% over the last four quarters [1]. Group 1: Revenue Expectations - The Zacks Consensus Estimate for APTV's revenues in the upcoming quarter is $4.88 billion, reflecting a decline of less than 1% primarily due to weakness in the Signal & Power Solutions segment [2]. - The consensus estimate for Advanced Safety & User Experience revenues is $1.4 billion, indicating a year-over-year increase of 2.2% [3]. - The Signal & Power Solutions segment's revenues are estimated at $3.5 billion, suggesting a year-over-year decline of 1.8% [3]. Group 2: Earnings Expectations - The consensus estimate for earnings is $1.66 per share, representing a year-over-year growth of 18.6% [3]. - Increasing operating expenses are expected to have positively impacted the bottom line for the quarter [3]. Group 3: Earnings Prediction Model - APTV has an Earnings ESP of +2.48% and a Zacks Rank of 3 (Hold), indicating a likely earnings beat this time around [4].

Core Viewpoint - Aptiv PLC (APTV) is expected to report quarterly earnings of $1.66 per share, an 18.6% increase year-over-year, with revenues projected at $4.88 billion, reflecting a 0.8% decrease from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 4.1% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Sales Projections - Analysts estimate 'Net Sales- Signal and Power Solutions' to be $3.51 billion, a decrease of 1.8% from the prior-year quarter [5]. - 'Net Sales- Advanced Safety and User Experience' is projected at $1.39 billion, indicating a 2.2% increase from the year-ago quarter [5]. Operating Income Estimates - The estimated 'Adjusted Operating Income- Advanced Safety and User Experience' is $168.38 million, up from $141 million in the previous year [6]. - 'Adjusted Operating Income- Signal and Power Solutions' is expected to reach $435.46 million, down from $459 million reported in the same quarter last year [6]. Stock Performance - Over the past month, shares of Aptiv have returned +3.1%, outperforming the Zacks S&P 500 composite's +2.7% change [7]. - Aptiv currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7].

Stock Performance - Aptiv PLC closed at $62 91, up 0 37% from the previous session, lagging behind the S&P 500's 0 53% gain [1] - Over the past month, Aptiv PLC shares gained 3 64%, outperforming the Business Services sector's 3 28% and the S&P 500's 1 24% [1] Earnings and Revenue Projections - Aptiv PLC is projected to report earnings of $1 64 per share on February 6, 2025, representing a 17 14% year-over-year growth [2] - Revenue is forecasted at $4 87 billion, a 1 06% decline compared to the same quarter last year [2] Analyst Forecast Revisions - Recent revisions to analyst forecasts reflect short-term business trends and can indicate optimism about the company's outlook [3] - The Zacks Consensus EPS estimate has decreased by 1 51% over the past month [5] Valuation Metrics - Aptiv PLC has a Forward P/E ratio of 9 08, trading at a discount compared to the industry average of 23 71 [6] - The company's PEG ratio is 0 55, significantly lower than the Technology Services industry average of 1 6 [7] Industry Ranking - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 87, placing it in the top 35% of all industries [7] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [8]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Aptiv PLC (APTV) . This company, which is in the Zacks Technology Services industry, shows potential for another earnings beat.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 11.81%.For the most recent qua ...