Adient (ADNT) Q2 Earnings Beat Estimates, Guidance Revised

Core Viewpoint - Adient reported adjusted earnings per share (EPS) of 54 cents for Q2 fiscal 2024, an increase from 32 cents in the previous year, surpassing the Zacks Consensus Estimate of 39 cents [1] Financial Performance - The company generated net sales of $3.75 billion, a decrease of 4.1% year over year, missing the Zacks Consensus Estimate of $3.83 billion [1] - Cash and cash equivalents stood at $905 million as of March 31, 2024, down from $1.11 billion as of September 30, 2023 [4] - Long-term debt was reported at $2.4 billion as of March 31, 2024 [4] - Capital expenditures totaled $69 million, compared to $56 million in the prior-year quarter [4] - During the quarter, Adient repurchased nearly 1.5 million shares for $50 million [4] Segmental Performance - The Americas segment recorded revenues of $1.66 billion, down 5.7% year over year, missing the Zacks Consensus Estimate of $1.80 billion; adjusted EBITDA increased to $80 million from $72 million [2] - The EMEA segment generated revenues of $1.37 billion, a decline of 2.2% year over year, missing the Zacks Consensus Estimate of $1.38 billion; EBITDA rose to $57 million from $53 million [3] - The Asia segment reported revenues of $742 million, down 4.1% year over year, missing the Zacks Consensus Estimate of $774 million; adjusted EBITDA fell 0.8% year over year to $112 million [3] Revised Guidance for 2024 - Adient revised its fiscal 2024 revenue guidance to a range of $14.8-$14.9 billion, down from $15.40-$15.50 billion; adjusted EBITDA is now estimated at $900-$920 million, down from $985 million [5] - Equity income is projected to be $80 million, an increase from the previous guidance of $70 million [5] - Free cash flow is anticipated to be $250 million, down from the previous guidance of $300 million [5] - Capital expenditures and cash tax are estimated between $310 million and $105 million, respectively; interest expenses are expected to be $185 million [5]