Advanced safety and user experience segment
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Aptiv Gears Up to Report Q3 Earnings: Here's What to Expect
ZACKS· 2025-10-28 17:11
Core Insights - Aptiv PLC (APTV) is expected to release its third-quarter 2025 results on October 30, with earnings estimated at $1.81 per share, reflecting a 1.09% decline year-over-year, while revenues are projected at $5.06 billion, indicating a 4.25% increase from the previous year [1][8] Financial Performance Expectations - For Q3 2025, Aptiv anticipates revenues between $4.95 billion and $5.10 billion, with adjusted EPS expected between $1.6 and $1.8. The adjusted operating income margin is projected to be between 11.3% and 12%, and the adjusted EBITDA margin is expected to range from 15.3% to 15.8% [3] - For the full year 2025, Aptiv expects revenues between $20 billion and $20.3 billion, with adjusted EPS anticipated between $7.3 and $7.6 per share. The adjusted operating income margin is projected to be between 11.9% and 12.2%, with capital expenditure expected at $780 million [4] Recent Performance and Trends - Aptiv has a strong earnings surprise history, having beaten earnings estimates in each of the last four quarters, with an average surprise of 10.29% [2] - In Q2 2025, Aptiv reported adjusted earnings of $2.12 per share, surpassing estimates by 18.4% and increasing 34.2% year-over-year. Revenues for the same quarter were $5.21 billion, exceeding estimates by 3.5% and rising 3.1% year-over-year [7] Strategic Initiatives - The company's advanced safety and user experience segment is expected to benefit from cost reductions through the optimization of AI workloads. Collaboration with ServiceNow aims to enhance automation and efficiency across various sectors, potentially creating new revenue opportunities [5][8] - Aptiv's adoption of over 450 AI workflows is expected to accelerate digital transformation, supporting long-term growth and profitability [5] Earnings Prediction Model - The Zacks model predicts an earnings beat for Aptiv in the upcoming reporting cycle, supported by a positive Earnings ESP of +4.83% and a Zacks Rank of 2 (Buy) [6]