Autoliv Inc. (ALV): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Autoliv's earnings per share improved 8.3% to $1.43 in the first quarter, beating the Zacks Consensus Estimate of $1.42. Revenues increased 7.5% to $2.3 billion, in line with the Zacks Consensus Estimate. Autoliv expects organic sales growth of about 5% and operating margin of around 9% in 2014. Although the company benefits from a strong balance sheet and innovative products, there are concerns stemming from stiff competition and high dependence on just a few customers. Moreover, low vehicle production in Europe and Brazil could weigh on the company's performance. As a result, we are maintaining a Neutral recommendation.
Autoliv Inc. (ALV), based in Stockholm, Sweden, is a holding company that operates through two principal subsidiaries: Autoliv AB (AAB) and Autoliv ASP (ASP). The company manufactures occupant restraint systems for automobiles and has a product portfolio consisting primarily of safety airbags, seat belts and steering wheels.
The Swedish corporation, AAB, develops, manufactures and supplies automotive safety systems to the automotive industry. These include seatbelts, seatbelt pretensioners, frontal airbags, side-impact airbags, steering wheels and seat sub-systems. The Indiana Corporation, ASP, designs, develops and manufactures airbag modules, inflators, airbag cushions, seatbelts and steering wheels.
Airbags products accounted for about 64.7% of revenues in the first quarter of 2014, while seatbelts products and active safety products contributed 30.6% and 4.7%, respectively. Most major automobile manufacturers in the world are served by Autoliv. It segregates results geographically into Europe, Americas, China, Japan, and the Rest of the World.
Autoliv Inc. (ALV): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AUTOLIV INC (ALV): Free Stock Analysis Report
To read this article on Zacks.com click here.