Recent performance indicates a steady upward trend with a modest gain of 1.06% over the past 30 days, despite a decline of 5.81% in the last 10 days.The stock is projected to increase by 16.15%, suggesting it is currently undervalued and has significant growth potential.Autoliv's strong fundamentals are highlighted by a Piotroski Score of 8, indicating robust financial health and potential for future growth.Autoliv, Inc. (NYSE:ALV) is a leading company in the automotive safety industry, specializing in the ...

Core Insights - Autoliv, Inc. reported $2.71 billion in revenue for Q3 2025, a year-over-year increase of 5.9% and a surprise of +3.1% over the Zacks Consensus Estimate of $2.62 billion [1] - The EPS for the same period was $2.32, compared to $1.84 a year ago, resulting in an EPS surprise of +10.48% against the consensus estimate of $2.10 [1] Financial Performance Metrics - Organic change in Airbags, Steering Wheels, and Other products was 3.6%, exceeding the average estimate of 0% [4] - Total organic change was 3.9%, compared to the average estimate of 0.4% [4] - Organic change in Seatbelt Products and Other was 4.5%, surpassing the average estimate of -1.1% [4] Regional Sales Performance - Net Sales in the Americas reached $897 million, exceeding the estimated $835.83 million, representing a +5.4% change year-over-year [4] - Net Sales in Europe were $745 million, above the estimated $729.46 million, reflecting a +6.4% change year-over-year [4] - Net Sales in Asia excluding China were $538 million, surpassing the estimated $522 million, with a year-over-year change of +5.9% [4] - Net Sales in China amounted to $526 million, exceeding the estimated $493.51 million, representing a +6.3% change year-over-year [4] Product Category Sales - Net Sales for Seatbelt Products and Other reached $875 million, above the estimated $825.51 million, indicating a +6.8% year-over-year change [4] - Net Sales for Airbags, Steering Wheels, and Other products were $1.83 billion, exceeding the estimated $1.76 billion, with a +5.4% change year-over-year [4] Stock Performance - Autoliv's shares have returned -4.4% over the past month, while the Zacks S&P 500 composite has changed by +0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - Sales reached a record $2706 million for the third quarter, compared to $2555 million in Q3'24[7, 12] - Adjusted operating income increased to $271 million, up from $237 million in Q3'24[12] - Adjusted operating margin improved to 10%, a rise from 93% in the same period last year[12] - Operating cash flow increased by 46% from $177 million to $258 million[12] Growth Drivers - Organic sales grew by 39%[25] - Share repurchases amounted to $100 million, and a dividend of $085 per share was paid, a 21% increase compared to Q2'25[7] - Sales in Americas emerged as the largest contributor to the increase[7] - The company outperformed strongly with Chinese OEMs, mainly as a result of several new launches[7] Strategic Initiatives - A second R&D center in China is expected to be operational in Q3'26[7] - Strategic partnership with CATARC in China to advance safety technologies[8] - Strategic Joint Venture to advance automotive safety electronics[9]

Core Insights - Autoliv Inc. is a leading manufacturer of automotive safety systems, preparing to release quarterly earnings on October 17, 2025, with Wall Street expecting an EPS of $2.03 and revenue of approximately $2.7 billion [1][6] Financial Performance Expectations - The upcoming earnings report is anticipated to show a year-over-year increase in earnings, driven by higher revenues for the quarter ending September 2025, with the Zacks Consensus Estimate predicting a slightly lower EPS of $2.00, indicating potential market volatility [2][6] Market Valuation Metrics - Autoliv's P/E ratio of 13.04 suggests a moderate valuation of its earnings, while the price-to-sales ratio of 0.89 indicates investor willingness to pay per dollar of sales [3][6] - The enterprise value to sales ratio of 1.08 reflects the market's valuation of the company's total worth relative to its sales [3] Cash Flow and Financial Health - The enterprise value to operating cash flow ratio of 11.83 shows how the market values Autoliv in relation to its cash flow from operations, and an earnings yield of 7.67% provides insight into the return on investment for shareholders [4] - The debt-to-equity ratio of 0.90 indicates a balanced use of debt and equity to finance the company's assets [4][6] - Autoliv's current ratio of 0.93 measures its ability to cover short-term liabilities with short-term assets, suggesting potential challenges in meeting short-term obligations [5]

Core Insights - Autoliv, Inc. reported revenue of $2.71 billion for the quarter ended June 2025, reflecting a 4.2% increase year-over-year and a surprise of +3.36% over the Zacks Consensus Estimate of $2.63 billion [1] - The company's EPS for the quarter was $2.21, up from $1.87 in the same quarter last year, resulting in an EPS surprise of +6.76% compared to the consensus estimate of $2.07 [1] Financial Performance Metrics - Organic change in Airbags, Steering Wheels, and Other products was 3.1%, exceeding the average estimate of 0.4% from two analysts [4] - Total organic change was reported at 3.4%, significantly higher than the 0.4% estimated by two analysts [4] - Organic change in Seatbelt Products and Other was 4%, compared to the average estimate of 1.9% from two analysts [4] Regional Sales Performance - Net Sales in the Americas reached $891 million, surpassing the average estimate of $855.27 million, but showing a -0.2% change year-over-year [4] - Net Sales in Europe were $828 million, exceeding the average estimate of $751.53 million, with a year-over-year increase of +8.8% [4] - Net Sales in Asia excluding China were $519 million, above the average estimate of $499.63 million, reflecting a +7.5% year-over-year change [4] - Net Sales in China amounted to $477 million, slightly below the average estimate of $488.36 million, with a +1.9% year-over-year change [4] Product Category Sales - Net Sales for Seatbelt Products and Other reached $902 million, exceeding the average estimate of $839.37 million, with a year-over-year change of +5.1% [4] - Net Sales for Airbags, Steering Wheels, and Other products were $1.81 billion, surpassing the average estimate of $1.76 billion, reflecting a +3.7% year-over-year change [4] Stock Performance - Autoliv's shares have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record sales and earnings for Q2 2025, with net sales of approximately $2.7 billion, representing a 4% year-over-year increase [10][21] - Adjusted operating income increased by 14% to $251 million from $221 million last year, with an adjusted operating margin of 9.3%, an improvement of 80 basis points [10][21] - Earnings per share for Q2 reached a record high, with a year-over-year increase of $0.33, driven by higher operating income and a reduced share count [8][21] Business Line Data and Key Metrics Changes - The company achieved a gross margin of 18.5%, an increase of 30 basis points year-over-year, primarily due to direct labor efficiency and headcount reductions [11][21] - Direct labor productivity improved as the company reduced direct production personnel by 3,200 year-over-year [11] - The company successfully recovered approximately 80% of the tariff costs incurred during Q2 and expects to recover most of the remaining portion later in the year [8][29] Market Data and Key Metrics Changes - Global light vehicle production for Q2 increased by 2.7%, exceeding expectations, while production in North America and Western Europe declined by around 3% each [12][30] - In China, the company outperformed light vehicle production growth, with sales to domestic OEMs growing more than 16% [16][30] - The company’s sales in June outpaced the growth of Chinese light vehicle production, indicating a positive trend expected to continue [7][30] Company Strategy and Development Direction - The company emphasized its commitment to achieving $300 million to $500 million annually in stock repurchases and increasing its dividend to $0.85 per share [9][34] - The strategic roadmap focuses on sustainable growth through partnerships with leading global and Chinese OEMs, innovations in safety systems, and operational improvements [33][34] - The company aims to navigate the complexities of tariffs and economic factors while maintaining a strong balance sheet and shareholder returns [29][34] Management Comments on Operating Environment and Future Outlook - Management expressed caution about the remainder of the year due to complexities from tariffs and economic factors, despite a strong Q2 performance [6][30] - The outlook for global light vehicle production in 2025 remains uncertain, with expectations of a decline in the second half of the year [30][34] - The company anticipates a challenging 2025 for the automotive industry but expects significant improvement in sales performance in China [34] Other Important Information - The company’s cash flow remained strong despite higher receivables, driven by robust sales and tariff compensations [9][24] - The trade working capital increased by $185 million compared to the prior year, attributed to higher accounts receivables and inventories [25] - The company’s leverage ratio remains strong at 1.3 times, well below the target limit of 1.5 times [26] Q&A Session Summary Question: Performance in China - The company indicated that it is closing the gap in performance with Chinese OEMs and expects to continue outperforming the market in China towards the end of the year [41][43] Question: Product Volume Dynamics - The company explained that the fluctuations in product volumes are due to mix effects and launch activities, which can lead to significant variations [44][45] Question: Tariff Recovery - Management clarified that the slower recovery of tariffs in Q2 was due to timing effects and expressed confidence in recovering the remaining tariffs by the end of the year [49][51] Question: Margin Guidance - The company expects Q3 to be the weakest quarter due to a projected drop in light vehicle production, with Q4 anticipated to be the strongest [56][78] Question: Pricing Dynamics - The company continues to negotiate pricing in light of tariffs and inflationary impacts, maintaining a historical pricing model [104][105] Question: EV and ICE Dynamics - The company noted that the EV component has not significantly impacted its gross operating margin in the Americas, and tariffs create uncertainty regarding new model launches [108][109]

Financial Performance - Record Q2 sales of $2714 million, compared to $2605 million in Q2'24[10] - Adjusted operating income increased to $251 million from $221 million in Q2'24[10] - Adjusted operating margin improved to 93% from 85% in Q2'24[10] - Share repurchases amounted to $51 million in Q2'25[8] Sales and Market Dynamics - Organic sales grew by 34% despite a negative regional Light Vehicle Production (LVP) mix[23] - Europe and India were strong sales drivers, along with tariff compensations[8] - The company successfully recovered approximately 80% of tariffs incurred during the quarter[8] - Global Light Vehicle Production (LVP) is expected to decline by around 05% in 2025[60] Cost Management and Efficiency - Substantial cost improvements were achieved through direct labor productivity and other operational efficiencies[12] - The company is progressing with structural cost reduction activities[8] Future Outlook - The company anticipates average annual share repurchases between $300 million and $500 million through the end of 2029[8] - Full year 2025 guidance includes an organic sales increase of around 3% and an adjusted operating margin of around 10 to 105%[75]

Core Insights - Autoliv, Inc. (ALV) is expected to report quarterly earnings of $2.07 per share, reflecting a 10.7% increase year-over-year, with revenues projected at $2.63 billion, a 0.8% increase from the previous year [1] - Analysts have revised the consensus EPS estimate upward by 0.7% over the past 30 days, indicating a collective reassessment of projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Financial Metrics - Analysts estimate 'Net Sales- Seatbelt Products and Other' to reach $839.37 million, indicating a -2.2% change year-over-year [5] - 'Net Sales- Airbags, Steering Wheels and Other' is projected at $1.76 billion, reflecting a +0.5% change from the prior year [5] - 'Net Sales- Americas' is expected to be $855.27 million, showing a -4.2% change from the previous year [5] - 'Net Sales- Europe' is forecasted at $751.53 million, indicating a -1.2% change year-over-year [6] - 'Net Sales- Asia excl. China' is estimated to reach $499.63 million, reflecting a +3.4% change [6] - 'Net Sales- China' is projected at $488.36 million, indicating a +4.4% change from the prior year [6] Stock Performance - Autoliv shares have increased by +5.6% over the past month, compared to a +5% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Points - Autoliv, Inc. held its 2025 Annual General Meeting of Stockholders on May 8, 2025, where several key proposals were approved [1] - Jan Carlson continues to serve as the Chairman of the Board [2] - The company reported sales of $10.4 billion in 2024 and operates in 25 countries with 65,000 employees [4] Board and Committees - The following directors were elected for a one-year term ending at the 2026 AGM: Mikael Bratt, Laurie Brlas, Jan Carlson, Leif Johansson, Adriana Karaboutis, Franz-Josef Kortüm, Frédéric Lissalde, Xiaozhi Liu, Gustav Lundgren, Martin Lundstedt, and Thaddeus "Ted" Senko [5] - The Audit and Risk Committee is chaired by Ted Senko, with members Laurie Brlas, Adriana Karaboutis, and Gustav Lundgren [5] - The Leadership Development and Compensation Committee is chaired by Frédéric Lissalde, with members Leif Johansson, Xiaozhi Liu, and Martin Lundstedt [5] - The Nominating and Corporate Governance Committee is chaired by Leif Johansson, with members Laurie Brlas, Franz-Josef Kortüm, and Frédéric Lissalde [5] Company Overview - Autoliv is the worldwide leader in automotive safety systems, developing products such as airbags, seatbelts, and mobility safety solutions [3][4] - In 2024, Autoliv's products saved nearly 37,000 lives and reduced over 600,000 injuries [3]

Financial Performance - Consolidated sales decreased by 1% to $2578 million in Q1'25 compared to $2615 million in Q1'24 [14] - Adjusted operating income increased by 28% to $255 million in Q1'25 from $199 million in Q1'24 [14] - Adjusted operating margin improved to 99% in Q1'25, up from 76% in Q1'24 [8, 14] - Operating cash flow decreased to $77 million in Q1'25 compared to $122 million in Q1'24 [14] - The company repurchased shares for $50 million [9] Sales and Market Dynamics - Organic sales grew by 2% [29] - The company outperformed global Light Vehicle Production (LVP) by 3 percentage points [35] - Europe accounted for 30% of sales, while the Americas accounted for 33% and Asia for 37% [33] - Global Light Vehicle Production (LVP) decreased by 04% [41, 90] Cost Management and Efficiency - The company reduced indirect workforce by over 1500 compared to Q1'23 [9] - Direct headcount reduced by 3700 year-over-year [9] Future Outlook - The company reiterates its full year 2025 guidance with organic sales increase around 2% and adjusted operating margin around 10 to 105% [9, 82] - The company expects operating cash flow around $12 billion for full year 2025 [82]