Why Is Adient (ADNT) Down 0.1% Since Last Earnings Report?

Core Viewpoint - Adient's recent earnings report shows a mixed performance, with adjusted EPS falling short of expectations while net sales exceeded estimates, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Adient reported adjusted EPS of 52 cents for Q4 fiscal 2025, down from 68 cents in the same period last year and below the Zacks Consensus Estimate of 55 cents [2]. - The company generated net sales of $3.69 billion, a 3.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.63 billion [2]. Segmental Performance - The Americas segment recorded revenues of $1.79 billion, a 3.9% increase year-over-year, exceeding the Zacks Consensus Estimate of $1.76 billion, but adjusted EBITDA fell to $111 million from $116 million due to unfavorable net commodity costs [4]. - The EMEA segment achieved revenues of $1.15 billion, also up 3.9% year-over-year, surpassing the Zacks Consensus Estimate of $1.1 billion, with adjusted EBITDA rising to $31 million from $28 million [5]. - The Asia segment reported revenues of $783 million, up from $765 million in the previous year, exceeding the Zacks Consensus Estimate of $771 million, but adjusted EBITDA decreased to $106 million from $112 million due to lower equity income and unfavorable volume/mix [6]. Financial Position - As of September 30, 2025, Adient had cash and cash equivalents of $958 million, an increase from $945 million a year earlier, while long-term debt stood at $2.39 billion [7]. - Capital expenditures totaled $79 million, up from $72 million in the prior-year quarter [7]. Guidance for FY26 - Adient projects fiscal 2026 revenues to be $14.4 billion, a decrease from $14.54 billion in fiscal 2025, with adjusted EBITDA estimated at $845 million, down from $881 million [8]. - Free cash flow is anticipated to be $90 million, with capital expenditures estimated at $300 million [8]. Estimate Trends - Estimates for Adient have trended downward over the past month, with a significant shift of -58.02% in consensus estimates [9][10]. VGM Scores - Adient currently holds a Growth Score of B, a Momentum Score of D, and a Value Score of A, resulting in an aggregate VGM Score of A, indicating strong value potential [11]. Industry Performance - Adient operates within the Zacks Automotive - Original Equipment industry, where competitor Cooper-Standard has seen a 4.6% gain over the past month, despite reporting a loss of $0.24 per share compared to a loss of $0.68 a year ago [13].