Analyst Note| Richard Hilgert |
Narrow-moat rated Aptiv reported first-quarter earnings per share before special items (EPS) of $1.06, beating the $0.82 FactSet consensus EPS estimate by $0.24. While adjusted net income of $301 million was a 75% year-over-year increase, an 11% increase in diluted shares outstanding from the convertible preferred issued in 2020 resulted in 56% EPS growth from the $0.68 reported a year ago. First-quarter revenue jumped 25% to $4.0 billion from $3.2 billion last year. Excluding currency, organic revenue rose by 20%, exceeding the 5% increase in global light vehicle production weighted to Aptiv’s customer base by 15 percentage points. Adjusted EBITDA was $630 million for a margin of 15.7%, impressive given remaining COVID-19 effects and supply chain inefficiencies from the global microchip shortage, both of which created a total $70 million headwind in the quarter.