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Aptiv PLC (APTV), headquartered in Dublin, Ireland, is a global leader in automotive technology and mobility solutions. With a market cap of $14.4 billion, Aptiv drives innovation by delivering cutting-edge software and hardware solutions that enable safer, greener, and more connected vehicles. The company is set to release its Q4 earnings before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect Aptiv to report a profit of $1.62 per share, up 15.7% from $1.40 in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projection over the past four quarters.
Aptiv’s Q3 adjusted EPS of $1.83, exceeding the consensus estimates by 8.3%. The earnings beat was driven by strong demand for its automotive technology solutions.
In fiscal 2024, analysts expect Aptiv to report an EPS of $6.15, up 26.5% from $4.86 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 14% year-over-year to $7.01.
Aptiv’s shares are down 26% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 25.8% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 28.8% returns over the same time frame.
Shares of Aptiv plunged 17.7% following its disappointing Q3 results on Oct. 31, which revealed a 5.1% year-over-year decline in net sales to $4.9 billion. The company reported an adjusted operating income of $593 million, up from $560 million in the prior year.
Looking ahead, Aptiv's full-year 2024 guidance projects net sales between $19.6 billion and $19.9 billion, with GAAP operating income ranging from $1.765 billion to $1.865 billion, reflecting an operating margin of 9% to 9.4%. Additionally, adjusted EBITDA is expected to range between $3.03 billion and $3.12 billion, underscoring a strong operational outlook.
Wall Street holds a cautiously optimistic view of Aptiv, with a consensus rating of "Moderate Buy." Among the 21 analysts covering the stock, 13 rate it a "Strong Buy," two recommend a “Moderate Buy,” four advise a "Hold," and two advise a "Strong Sell." The average price target of $75.90 indicates a potential upside of 22.8% from current levels.
