Adient (ADNT) Q1 Earnings Miss Estimates, Guidance Revised

Core Viewpoint - Adient reported adjusted earnings per share (EPS) of 31 cents for Q1 fiscal 2024, a decline from 34 cents in the previous year and below the Zacks Consensus Estimate of 47 cents. Net sales were $3.66 billion, down 1% year over year, also missing the consensus estimate of $3.72 billion [1]. Segmental Performance - The Americas segment generated revenues of $1.65 billion, a 4% decline year over year, but exceeded the Zacks Consensus Estimate of $1.64 billion. Adjusted EBITDA for this segment was $80 million, up from $69 million in the prior year, surpassing the consensus estimate of $57 million [2]. - The EMEA segment reported revenues of $1.27 billion, a 7.6% increase year over year, exceeding the Zacks Consensus Estimate of $1.25 billion. EBITDA for this segment was $45 million, up from $28 million in the previous year, also beating the consensus estimate of $40.99 million [3]. - The Asia segment's revenues were $770 million, down 6.2% year over year, missing the Zacks Consensus Estimate of $844 million. Adjusted EBITDA fell 17.4% year over year to $114 million due to program transitions and timing of recoveries [3]. Financial Position - As of December 31, 2023, Adient had cash and cash equivalents of $990 million, down from $1.11 billion as of September 30, 2023. Long-term debt was $2,403 million, slightly up from $2,401 million [4]. - Capital expenditures for Q1 fiscal 2024 totaled $55 million, compared to $61 million in the prior-year quarter. The company repurchased nearly three million shares for $100 million during the quarter [4]. Revised Guidance 2024 - Adient revised its fiscal 2024 revenue guidance to a range of $15.40-$15.50 billion, down from the previous estimate of $15.60-$15.70 billion. Adjusted EBITDA is now estimated at $985 million, reduced from $1.01 billion. Free cash flow is projected at $300 million, with interest expenses and cash tax estimated between $185 million and $105 million, respectively [5].