Autoliv Earnings: Here’s Why Investors are Happy Now

Autoliv, Inc. (NYSE:ALV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4%.

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Autoliv, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 17.31% to $1.29 in the quarter versus EPS of $1.56 in the year-earlier quarter.

Revenue: Decreased 2.01% to $2.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Autoliv, Inc. reported adjusted EPS income of $1.29 per share. By that measure, the company beat the mean analyst estimate of $1.23. It beat the average revenue estimate of $2.1 billion.

Quoting Management: Jan Carlson, President and CEO “I am very pleased with Autoliv’s performance in the first quarter, both sales and margins were higher than we expected at the beginning of the year. A good model mix and higher sales in China were the primary areas of strength, but smaller sales declines than expected in Europe and South Korea also contributed. It is especially rewarding to see that our long-term investments in China continue to pay off as evidenced by our quarterly growth of 24% in China, outperforming the Chinese light vehicle production (LVP) by more than 10 pp.”

Key Stats (on next page)…

Revenue increased 4.05% from $2.05 billion in the previous quarter. EPS decreased 18.35% from $1.58 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.45 to a profit $1.35. For the current year, the average estimate has moved down from a profit of $5.83 to a profit of $5.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)