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Schaffhausen, Switzerland-based Aptiv PLC (APTV) engages in the design, manufacture, and sale of vehicle components. It provides electronic and safety technology solutions to the automotive and commercial vehicle markets. With a market cap of $11.9 billion, Aptiv operates through the Signal and Power Solutions and Advanced Safety and User Experience segments.
The company is set to announce its first-quarter results before the market opens on Thursday, May 1. Ahead of the event, analysts expect APTV to report an adjusted EPS of $1.53, up 31.9% from $1.16 reported in the year-ago quarter. Meanwhile, the company has surpassed Street’s bottom-line expectations in each of the past four quarters.
For the full fiscal 2025, APTV is projected to report an adjusted EPS of $7.26, up nearly 16% from $6.26 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to further grow 13.9% year-over-year to $8.27 per share.
APTV stock prices have tanked 26.8% over the past 52 weeks, significantly underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.3% gains and the S&P 500 Index’s ($SPX) 3.8% uptick during the same time frame.
Aptiv’s stock prices have observed a significant downturn in recent months. However, its stock prices rose 3.6% after the release of its mixed Q4 results on Feb. 6. Due to its underperformance in Europe, which was offset by growth in other markets, Aptiv’s topline remained flat at $4.9 billion, missing Street’s expectations by a small margin.
However, the company observed a notable expansion in its margin. The company’s adjusted operating margins expanded from 12.2% in the prior year’s Q4 to 12.7%, while its adjusted EBITDA jumped from 15.7% to 16.5%. Meanwhile, its adjusted EPS surged 25% year-over-year to $1.75, surpassing the consensus estimates by 5.4%. Moreover, Aptiv’s cash flow from operations soared 69.9% year-over-year to $1.1 billion, boosting investor confidence.
The consensus view on APTV stock is moderately optimistic, with a “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include 15 “Strong Buys,” one “Moderate Buy,” six “Holds,” and one “Strong Sell.” As of writing, the stock is trading significantly below its mean price target of $75.38.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
