Autoliv Increases Sales but Misses Revenue Estimates

Seth Jayson, The Motley Fool
Updated

Autoliv (NYS: ALV) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Autoliv missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Autoliv tallied revenue of $2.05 billion. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $2.10 billion. Sales were 7.2% higher than the prior-year quarter's $1.91 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.70. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.69 per share. GAAP EPS of $1.70 for Q4 were 10% lower than the prior-year quarter's $1.89 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.0%, 120 basis points worse than the prior-year quarter. Operating margin was 11.0%, 180 basis points worse than the prior-year quarter. Net margin was 7.8%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.16 billion. On the bottom line, the average EPS estimate is $1.58.

Next year's average estimate for revenue is $8.51 billion. The average EPS estimate is $6.38.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 363 members out of 381 rating the stock outperform, and 18 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Autoliv a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Autoliv is outperform, with an average price target of $73.93.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Autoliv. Motley Fool newsletter services have recommended creating a bear put ladder position in Autoliv. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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