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Based in Dublin, Ireland, Aptiv PLC (APTV), a global leader in the automotive sector with a market cap of $19.7 billion, designs and manufactures vehicle components and provides advanced electrical, electronic, and safety technology solutions. The company is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, Aug. 1.
Ahead of this event, analysts expect the auto parts supplier to report a profit of $1.39 per share, up 11.2% from $1.25 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. The company reported EPS of $1.16 in the most recent quarter, exceeding the consensus estimate by a solid 10.5% margin due to demand for Aptiv's modern safety equipment.
For fiscal 2024, analysts expect APTV to report EPS of $5.99, up 23.3% from $4.86 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 28.9% annually to $7.72.
On a YTD basis, APTV saw a decline of 19.3%, trailing behind both the S&P 500 Index's ($SPX) 17.2% rise and the S&P 500 Cons Disc Sector SPDR's (XLY) 7.4% gain over the same period.
Shares of Aptiv rose 11.5% on May 2 as the company announced it would reduce its equity interest in the self-driving joint venture, Motional, which had been a financial drag. Hyundai agreed to acquire a portion of Aptiv's stake for $448 million and provide additional funding, relieving Aptiv from future funding obligations. Additionally, on the same day, the company announced its Q1 earnings results, which sailed past Wall Street’s bottom-line estimates and raised its share repurchase target, signaling confidence in its financial stability and growth prospects.
Analysts' consensus rating on Aptiv stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 21 analysts covering the stock, opinions include 13 "Strong Buys," two "Moderate Buys," three "Holds," two "Moderate Sells," and two "Strong Sells."
The above configuration is less bullish than three months ago, with 11 analysts suggesting a "Strong Buy." The average analyst price target for APTV is $97.16, suggesting a modest potential upside of 32.2% from current levels.
On the date of publication, Sohini Mondal 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.
