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Adient (ADNT) Misses Q1 Earnings Estimates, Shares Down (Revised)

Zacks

Shares of Adient plc ADNT declined 10.7% in trading, following the first-quarter fiscal 2019 earnings release on Feb 7. In the reported quarter, the company’s adjusted earnings per share were 31 cents, missing the Zacks Consensus Estimate of 48 cents. The adjusted bottom-line figure in the year-ago quarter was $1.05 per share. The decline was due to negative business performance, owing to launch inefficiencies.

During the quarter under review, Adient reported net sales of $4.16 billion, a decline from $4.2 billion recorded in first-quarter fiscal 2018. Further, the top line missed the Zacks Consensus Estimate of $4.17 billion.

Net income attributed to Adient was $17 million against net loss of $216 million in the prior-year quarter.

Adient PLC Price, Consensus and EPS Surprise

Quarter in Detail

During the reported quarter, the Seating segment of the company reported net sales of $3.7 billion, down from $3.8billion in first-quarter fiscal 2018. The segment’s adjusted EBIDTA was $261 million compared with $354 million recorded in the prior-year quarter.

The Seat Structures & Mechanisms (SS&M) segment reported net sales of $727 million, up from $718 million in the prior-year quarter. Adjusted EBITDA for this segment amounted to negative $72 million compared withnegative $82 million in the first quarter of the previous fiscal year.

Financials

Adient had cash and cash equivalents of $406 million as of Dec 31, 2018, compared with $687 million as of Sep 30, 2018.As of the same date, net debt amounted to $3 billion, up from $2.7 billion as of Sep 30, 2018.

In the first three months of fiscal 2019, cash used by operating activities was $128 million, almost similar to the same period of fiscal 2018. Capital expenditure rose to $144 million from $143 million recorded in the first quarter of the priorfiscal year.

Zacks Rank & Stocks to Consider

Adient currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader auto sector are General Motors Company GM, Allison Transmission Holdings, Inc. ALSN, and Oshkosh Corporation OSK, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Motors has an expected long-term growth rate of 8.5%. Share price of the company has increased 8.6% in the past three months.

Allison has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 4.1%.

Oshkosh has an expected long-term growth rate of 11.3%. Shares of the company have gained 18.3% in the past three months.

(We are reissuing this article to correct a mistake. The original article, issued on February 8, 2019, should no longer be relied upon).



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