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Aptiv PLC APTV

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Morningstar’s Analysis

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Aptiv's Q1 Results Outperform Addressable Market, 2021 Guidance Unchanged; Maintaining $103 FVE

Richard Hilgert Senior Equity Analyst

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.

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Company Profile

Business Description

Aptiv’s signal and power solutions segment supplies components and systems that make up a vehicle’s electrical system backbone, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems. The advanced safety and user experience segment provides body controls, infotainment and connectivity systems, passive and active safety electronics, advanced driver-assist technologies, and displays, as well as the development of software for these systems. Aptiv's largest customer is General Motors at roughly 13% of revenue, including sales to GM’s Shanghai joint venture. North America and Europe represented approximately 38% and 33% of total 2019 revenue, respectively.

Contact
5 Hanover Quay, Grand Canal Dock
Dublin, D02 VY79, Jersey
T +353 12597013
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 151,000

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