On Apr 4, 2014, we issued an updated research report on
This Zacks Rank #2 (Buy) stock reported an improvement of 7.6%
in its earnings per share of $1.70 in the fourth quarter, beating
the Zacks Consensus Estimate of $1.49. Revenues increased 14.6%
to a record high of $2.35 billion, beating the Zacks Consensus
Estimate of $2.24 billion.
Autoliv has a strong cash position and balance sheet. This
allows the company to actively pursue capital deployment
strategies to boost shareholders' value. Autoliv also benefits
from its innovative products.
For full-year 2014, the company anticipates rise in organic
sales by 5% due to strong growth in China and the Americas and
high demand for Active Safety products. Autoliv also announced an
operating margin guidance of around 9%, excluding capacity
alignments and antitrust investigation charges.
However, Autoliv faces significant risks due to customer
concentration. Moreover, light vehicle production (LVP) in
Western Europe is not expected to recover soon. It is expected to
increase only 1% in 2014. This will hamper sales of Autoliv. The
company also faces supply-chain issues in Brazil.
Though Autoliv occupies a leading position in the market, it
faces stiff competition in passive safety products. Moreover, the
market for active safety products is fragmented, leading to many
Autoliv reported positive earnings per share in 3 of the
trailing 4 quarters with an average beat of 4.06%. The Zacks
Consensus Estimate for the company's 2014 earnings per share
stands at $6.36, up 9.24% over 2013.
Key Picks from the Sector
Some better-ranked stocks in the sector include
Allison Transmission Holdings, Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).
ALLISON TRANSMN (ALSN): Free Stock Analysis
AUTOLIV INC (ALV): Free Stock Analysis Report
GENTHERM INC (THRM): Free Stock Analysis
VALEO SA-ADR (VLEEY): Get Free Report
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