Aptiv PLC APTV reported better-than-expected third-quarter 2018 results.
Adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate by 4 cents and met the midpoint of the guided range. Revenues of $3.5 billion exceeded the consensus mark by $63 million and came slightly below the midpoint of the guided range.
In the quarter, Aptiv completed the acquisition of Winchester Interconnect, which is expected to strengthen the company's Signal and Power Solutions segment.
So far this year, shares of Aptiv have lost 9.5%, against the Zacks S&P 500 Composite's 0.3% increase.
Quarterly Numbers in Detail
Revenues from the Signal and Power Solutions segment came in at $2.5 billion, up 9% on a year-over-year basis and contributing 73% to total revenues. Advanced Safety and User Experience revenues of $956 million improved 13% year over year and contributed 27% to total revenues.
Adjusted operating income of $420 million increased 7% year over year. Adjusted operating income margin of 12.1% contracted 40 basis points (bps) year over year.
Aptiv ended the third quarter with cash and cash equivalents balance of $771 million compared with $970 million in the previous quarter. Long-term debt was $4.1 billion, roughly flat sequentially.
Total available liquidity at the end of the third quarter was $3.1 billion compared with $3.3 billion at the end of the prior quarter. Net cash provided by operating activities was $119 million and capital expenditures were $212 million in the quarter.
The company repurchased 0.79 million shares for roughly $69 million in the quarter, leaving roughly $767 million shares for future share repurchases under its existing share repurchase program. Aptiv paid cash dividend of $58 million.
Aptiv trimmed its 2018 guidance. The company anticipates earnings to be in the range of $5.11 -$5.17 per share compared with the prior guidance of $5.30-$5.40. The revised guided range is below than the Zacks Consensus Estimate of $5.29.
Net sales are expected between $14.275 billion and $14.375 billion compared with $14.350 billion and $14.550 billion anticipated earlier. The revised guided range is lower than the Zacks Consensus Estimate of $14.420 billion.
Adjusted operating income is now expected in the range of $1.73-$1.75 billion compared with the previous guidance of $1.79-$1.82 billion. Aptiv expects adjusted operating income margin to be between 12.1% and 12.2%, lower than the previous guidance of roughly 12.5%.
Zacks Rank & Upcoming Releases
Aptiv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Investors interested in the broader Business Services sector are keenly awaiting third-quarter earnings reports from key players like Genpact G , Delphi Technologies DLPH and Green Dot GDOT . While Genpact will report on Nov 6, Delphi Technologies and Green Dot will release quarterly results on Nov 7.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
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 Delphi Technologies PLC (DLPH): Free Stock Analysis Report Genpact Limited (G): Free Stock Analysis Report Green Dot Corporation (GDOT): Free Stock Analysis Report Aptiv PLC (APTV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research