Aptiv (NYSE:APTV) Releases Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Aptiv beat quarterly earnings estimates, reporting adjusted EPS of $1.42 versus the $1.33 consensus, while revenue reached $3.20 billion, up 2.3% year over year and slightly above expectations.
• Adjusted revenue grew 2%, but EBITDA margin declined 140 basis points to 18% due to product mix, lower software revenue, commodity pressures, and growth investments. New business awards exceeded $13 billion year to date, including expansion beyond traditional automotive markets.
• Management plans to repurchase at least $650 million of stock in 2026 and return all free cash flow to shareholders through 2027, but expects a cautious 2027 amid chip inflation, tariffs, supply-chain issues, affordability pressures, and weaker German luxury-vehicle production.

Aptiv (NYSE:APTV - Get Free Report) posted its quarterly earnings data on Tuesday. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.09, FiscalAI reports. The company had revenue of $3.20 billion during the quarter, compared to analysts' expectations of $3.17 billion. Aptiv had a return on equity of 17.10% and a net margin of 1.17%. Aptiv's revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period in the prior year, the business earned $2.17 earnings per share.

Here are the key takeaways from Aptiv's conference call:

• Aptiv reported 2% adjusted revenue growth to $3.2 billion in Q3, while adjusted EBITDA margin fell 140 basis points to 18% due to product mix, lower software revenue, commodity pressures, and growth investments.
• New business awards reached more than $13 billion year to date, including strong growth in China exports, European Intelligent Systems bookings, and non-automotive markets such as data centers, robotics, drones, energy storage, and aerospace and defense.
• Aptiv plans to repurchase at least $650 million of stock in 2026 and return 100% of free cash flow to shareholders through at least the end of 2027, reflecting management’s view that the shares are undervalued.
• Management is taking a cautious view of 2027 because of semiconductor and memory-chip inflation, tariffs, supply-chain disruptions, vehicle affordability pressures, and weaker production at two German luxury OEMs; the company expects a flat to slightly positive year before revenue growth reaccelerates in 2028.
• Aptiv is evaluating its business and product portfolio and plans to provide an update in the first quarter of 2027, while continuing to invest in non-automotive growth and supply-chain resilience.

Aptiv Stock Performance

NYSE:APTV opened at $44.67 on Tuesday. The firm has a market capitalization of $9.27 billion, a PE ratio of 42.94, a price-to-earnings-growth ratio of 0.86 and a beta of 1.48. The company has a quick ratio of 1.33, a current ratio of 2.02 and a debt-to-equity ratio of 0.61. Aptiv has a 12-month low of $41.88 and a 12-month high of $88.93. The firm has a 50-day moving average price of $44.55 and a 200 day moving average price of $59.76.

Analyst Upgrades and Downgrades

APTV has been the subject of several research analyst reports. Zacks Research cut shares of Aptiv from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Fox Advisors cut shares of Aptiv from an "overweight" rating to an "equal weight" rating in a research note on Wednesday, August 5th. Barclays decreased their target price on Aptiv from $65.00 to $60.00 and set an "overweight" rating on the stock in a research report on Friday, October 9th. UBS Group lowered their price target on Aptiv from $62.00 to $57.00 and set a "buy" rating on the stock in a research note on Wednesday, October 7th. Finally, Argus set a $64.00 price target on Aptiv in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $72.60.

Aptiv Company Profile

Aptiv PLC NYSE: APTV is a global automotive technology company that develops systems and software intended to make vehicles safer, more connected and increasingly automated. Its solutions are used by automakers in passenger vehicles and commercial vehicles worldwide.

The company's product portfolio includes advanced driver-assistance and active-safety systems, vehicle computing platforms, infotainment and connectivity technologies, automated-driving solutions, and electrical and electronic distribution systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.