Core Insights - Aptiv PLC (APTV) is outperforming the Auto-Tires-Trucks sector with a year-to-date return of 35.8%, compared to the sector average of 10.3% [4] - The Zacks Rank for Aptiv PLC is 2 (Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 4.2% increase in the consensus estimate for full-year earnings [3] - Aptiv PLC belongs to the Automotive - Original Equipment industry, which has gained an average of 1.4% this year, further highlighting its strong performance relative to its industry [5] Industry Performance - The Auto-Tires-Trucks sector includes 99 individual stocks and currently holds a Zacks Sector Rank of 8, indicating its relative strength among 16 different groups [2] - The Automotive - Replacement Parts industry, which includes Standard Motor Products (SMP), is ranked 161 and has declined by 13.3% year to date, contrasting with the performance of Aptiv PLC [6]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Aptiv PLC (APTV), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Brokerage Recommendations - Aptiv PLC currently has an average brokerage recommendation (ABR) of 1.71, indicating a consensus between Strong Buy and Buy, based on recommendations from 23 brokerage firms [2]. - Out of the 23 recommendations, 15 are classified as Strong Buy, accounting for 65.2%, while one is classified as Buy, making up 4.4% of the total recommendations [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - The interests of brokerage firms may not align with those of retail investors, leading to potential misguidance regarding stock price movements [7][10]. Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, classifying stocks into five groups based on earnings estimate revisions [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not always be up-to-date [9][12]. Earnings Estimate Revisions for Aptiv - The Zacks Consensus Estimate for Aptiv has increased by 4.1% over the past month to $7.71, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for Aptiv, suggesting a positive outlook for the stock [14].

Core Insights - Aptiv PLC has a market capitalization of $17.7 billion and operates in various sectors including transportation, aerospace, defense, telecommunications, and industrial markets, focusing on advanced vehicle components and technologies [1] Stock Performance - Over the past 52 weeks, Aptiv's stock has increased by 45.2%, significantly outperforming the S&P 500 Index, which rose by 19.1% during the same period [2] - Year-to-date, Aptiv shares are up 34.3%, compared to a 15.6% increase in the S&P 500 [2] - Aptiv's performance also surpassed the Consumer Discretionary Select Sector SPDR Fund's return of 20.2% over the past year [3] Financial Results - In Q3 2025, Aptiv reported a GAAP net loss of $355 million, primarily due to a $648 million non-cash goodwill impairment charge from its 2022 Wind River acquisition [4] - Despite the loss, the company achieved record revenue of $5.2 billion and an adjusted EPS of $2.17, exceeding prior-year levels [4] Future Earnings Expectations - Analysts project that Aptiv's adjusted EPS will grow by 24.3% year-over-year to $7.78 for the fiscal year ending in December 2025 [5] - The company has a strong earnings surprise history, having beaten consensus estimates in the last four quarters [5] Analyst Ratings - Among 22 analysts covering Aptiv, the consensus rating is a "Strong Buy," with 14 "Strong Buy" ratings, one "Moderate Buy," six "Holds," and one "Strong Sell" [5] - This rating configuration has improved compared to three months ago, which had 12 "Strong Buy" ratings [6] Price Target - TD Cowen maintained a "Buy" rating on Aptiv and raised its price target to $107, with a mean price target of $96.67 indicating an 18.5% premium to the current price [7] - The highest price target of $109 suggests a potential upside of 33.6% [7]

Core Viewpoint - Aptiv PLC (NYSE:APTV) is gaining attention as a promising investment, particularly due to its upcoming spin-off of its software business and the potential for growth in the auto parts sector [1][2]. Group 1: Company Overview - Aptiv PLC is an auto components manufacturer with General Motors as a significant customer, accounting for 9% of its business [1]. - The company is in the process of spinning out its software business, which is expected to enhance its focus on growth and revenue acceleration [2]. Group 2: Growth Potential - The total addressable market for Aptiv's software segment is estimated to be around $90 billion, indicating substantial growth opportunities [2]. - The company is currently experiencing mid-single-digit growth, with expanding margins, suggesting a positive outlook for its financial performance [2]. Group 3: Upcoming Catalysts - An analyst day is scheduled for November, which is anticipated to provide more insights into the spin-off and its implications for the company's future [2].

Group 1 - The article discusses the expertise of a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1] - The analyst contributes to iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] - The focus is on identifying reasonably valued stock ideas within these markets [1] Group 2 - The analyst holds beneficial long positions in shares of companies such as LEA, MGA, and ALV through stock ownership, options, or other derivatives [1] - The article emphasizes the importance of conducting due diligence and research prior to any investment decisions [2] - It highlights the potential risks associated with short-term trading, options trading, and futures trading, which may not be suitable for investors with limited capital or experience [2]

Core Insights - The article discusses the investment strategies and market coverage of a senior analyst with over 10 years of experience in European and North American markets [1] Group 1: Analyst Profile - The analyst is a senior analyst and private portfolio manager with expertise in generating value ideas in European and North American markets [1] - The analyst contributes to iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] Group 2: Investment Focus - The analyst focuses on identifying reasonably valued stock ideas within the mentioned markets [1] - The analyst holds beneficial long positions in shares of companies such as LEA, MGA, and ALV through stock ownership, options, or other derivatives [1]

Core Viewpoint - Harris Associates L.P. emphasizes a consistent investment philosophy focused on value investing, believing that stock prices will eventually reflect the underlying value of companies [1] Company Philosophy - The company was founded in 1976 by investment professionals committed to superior investment research and customer service [1] - Harris Associates identifies companies trading at significant discounts to their intrinsic value, aiming for substantial profit potential [1] - The investment approach is framed as owning a piece of a business for the long term, highlighting the importance of intensive, fundamental research [1] Research Process - The research process involves a disciplined quantitative and qualitative screening method [1] - Analysts at Harris Associates are independent thinkers who do not rely on Wall Street for insights, evaluating companies based on fundamental characteristics [1]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Financial Performance - Net sales for Q3 2025 reached $5,212 million, a 7.4% increase from $4,854 million in Q3 2024[14] - Operating loss for Q3 2025 was $(175) million, compared to an operating income of $503 million in Q3 2024[14] - Net loss attributable to Aptiv for Q3 2025 was $(355) million, a decrease from net income of $363 million in Q3 2024[14] - Comprehensive loss income for Q3 2025 was $(347) million, compared to comprehensive income of $466 million in Q3 2024[15] - The net income for the nine months ended September 30, 2025, was $27 million, compared to $1,519 million for the same period in 2024, indicating a significant decline in profitability[25] - For the three months ended September 30, 2025, the company reported a net loss attributable to the company of $355 million, resulting in a basic and diluted loss per share of $1.63[142] - For the nine months ended September 30, 2025, the total net sales reached $15,245 million, an increase from $14,806 million in the same period of 2024, representing a growth of approximately 3%[209]. Assets and Liabilities - Total current assets increased to $8,760 million as of September 30, 2025, up from $7,826 million at the end of 2024[18] - Total liabilities decreased to $13,933 million as of September 30, 2025, down from $14,373 million at the end of 2024[18] - Total assets as of September 30, 2025, were $23,497 million, a slight increase from $23,458 million at the end of 2024[18] - The total shareholders' equity at September 30, 2025, was $9,462 million, a decrease from $9,675 million at June 30, 2024[23] - The balance of redeemable noncontrolling interest at September 30, 2025, was $102 million, down from $95 million at June 30, 2024[23] - The balance of additional paid-in capital at September 30, 2025, was $3,632 million, compared to $3,947 million at June 30, 2024[23] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,367 million, slightly down from $1,386 million in the same period of 2024[20] - Capital expenditures for the nine months ended September 30, 2025, were $(489) million, compared to $(664) million in the same period of 2024[20] - Capital expenditures for the third quarter of 2025 were $172 million, slightly up from $170 million in the same period of 2024[22] - Cash and cash equivalents at the end of Q3 2025 were $1,640 million, compared to $1,573 million at the end of 2024[18] Shareholder Activities - The company repurchased ordinary shares worth $96 million in the third quarter of 2025[23] - Aptiv's share repurchase program authorized up to $5.0 billion in July 2024, with $3.0 billion executed through ASR agreements in August 2024[143][144] - As of September 30, 2025, approximately $2,419 million remained available for share repurchases under the July 2024 program[148] - During the nine months ended September 30, 2025, Aptiv repurchased approximately 1.2 million shares for $96 million in the open market, in addition to 48.5 million shares through ASR agreements[146] Segment Performance - Electrical Distribution Systems generated external sales of $2.285 billion, while Engineered Components Group and Advanced Safety and User Experience reported $1.493 billion and $1.434 billion, respectively[197] - The Electrical Distribution Systems segment generated $6,516 million in net sales for the nine months ended September 30, 2025, compared to $6,181 million in 2024, marking an increase of approximately 5%[210] - The Engineered Components Group reported net sales of $5,018 million for the nine months ended September 30, 2025, up from $4,804 million in the same period of 2024, reflecting a growth of about 4%[210] - Advanced Safety and User Experience segment net sales were $4,373 million for the nine months ended September 30, 2025, compared to $4,410 million in 2024, showing a slight decline[210] Goodwill and Impairments - The Company recorded a non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit during the three months ended September 30, 2025[63] - The company reported a goodwill impairment of $648 million in the Advanced Safety and User Experience segment for Q3 2025[197] - The Company recognized a goodwill impairment of $648 million for the nine months ended September 30, 2025[202] Debt and Financing - Total debt as of September 30, 2025, was $7.63 billion, a decrease from $8.35 billion as of December 31, 2024[91] - The company had no amounts outstanding under the $2 billion Revolving Credit Facility as of September 30, 2025[96] - Aptiv issued €500 million in 1.60% Euro-denominated senior unsecured notes due 2028, priced at 99.881% of par, resulting in a yield to maturity of 1.611%[106] - Aptiv issued $1.5 billion in 3.10% senior unsecured notes due 2051, priced at 97.814% of par, resulting in a yield to maturity of 3.214%[109] Tax and Regulatory Matters - The income tax expense for the three months ended September 30, 2025, was $103 million, with an effective tax rate of 8%[134] - The effective tax rate for the nine months ended September 30, 2025, was impacted by a net discrete tax expense of approximately $253 million[135] - The Company recognized an increase to valuation allowances of $294 million to reduce the related deferred tax asset during the nine months ended September 30, 2025[138] Restructuring and Operational Changes - The company is actively evaluating restructuring options to align with customer needs and reduce operating costs, which may involve facility closures and employee termination benefits[67] - The company recorded restructuring charges of approximately $60 million and $149 million for the three and nine months ended September 30, 2025, respectively[86] - The company expects to incur additional restructuring costs of approximately $40 million over the next twelve months, with $25 million related to the Advanced Safety and User Experience segment[87] Market Risks and Derivatives - The company is actively managing market risks through cash flow hedges to mitigate fluctuations in foreign currency exchange rates and commodity prices[153] - As of September 30, 2025, the company had outstanding notional amounts related to commodity and foreign currency forward and option contracts totaling approximately $2.3 billion, including $365 million for copper and $1,160 million for Mexican Peso[154] - The company recognized $162 million of losses within the cumulative translation adjustment component of OCI for Euro-denominated debt during the nine months ended September 30, 2025[159]