Autoliv (NYSE:ALV) Shares Down 6.8% on Disappointing Earnings

Key Points

• Autoliv shares fell 6.8% to about $110.75 after the company reported quarterly earnings of $2.19 per share, below the $2.23 consensus estimate. Revenue also missed expectations at $2.69 billion and declined 0.5% year over year.
• The company maintained its quarterly dividend at $0.87 per share, equivalent to a $3.48 annualized payout and a 3.1% yield, with a 40.99% payout ratio.
• Analyst sentiment remains mixed but leans positive: Autoliv has a “Moderate Buy” consensus rating and a $134.92 average price target, while institutional investors own 69.57% of the stock.

Autoliv, Inc. (NYSE:ALV - Get Free Report) dropped 6.8% on Friday following a weaker than expected earnings announcement. The company traded as low as $110.69 and last traded at $110.7540. 370,052 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 744,557 shares. The stock had previously closed at $118.88.

The auto parts company reported $2.19 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.04). Autoliv had a return on equity of 29.36% and a net margin of 5.79%. The business had revenue of $2.69 billion during the quarter, compared to analysts' expectations of $2.73 billion. During the same quarter in the previous year, the company posted $2.32 earnings per share. The company's revenue was down .5% on a year-over-year basis.

Autoliv Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 28th were paid a dividend of $0.87 per share. The ex-dividend date was Friday, August 28th. This represents a $3.48 annualized dividend and a yield of 3.1%. Autoliv's payout ratio is presently 40.99%.

Analysts Set New Price Targets

ALV has been the subject of several analyst reports. Wells Fargo & Company upped their price target on Autoliv from $116.00 to $122.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 25th. Wolfe Research cut shares of Autoliv from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, September 23rd. TD Cowen lowered Autoliv from a "buy" rating to a "hold" rating and lowered their target price for the company from $148.00 to $137.00 in a research note on Tuesday, September 8th. Weiss Ratings raised shares of Autoliv from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, September 24th. Finally, Wall Street Zen lowered shares of Autoliv from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $134.92.

Hedge Funds Weigh In On Autoliv

Several institutional investors and hedge funds have recently bought and sold shares of ALV. Fifth Third Wealth Advisors LLC increased its stake in shares of Autoliv by 4.3% in the third quarter. Fifth Third Wealth Advisors LLC now owns 2,127 shares of the auto parts company's stock worth $238,000 after purchasing an additional 88 shares during the period. NBT Bank N.A. bought a new stake in shares of Autoliv in the 3rd quarter valued at approximately $2,245,000. Root Financial Partners LLC bought a new position in shares of Autoliv during the third quarter valued at $39,000. Reyes Financial Architecture Inc. bought a new position in Autoliv in the 3rd quarter valued at $32,000. Finally, Quadrant Capital Group LLC grew its holdings in Autoliv by 6.7% during the 3rd quarter. Quadrant Capital Group LLC now owns 2,763 shares of the auto parts company's stock worth $314,000 after acquiring an additional 173 shares during the last quarter. Hedge funds and other institutional investors own 69.57% of the company's stock.

Autoliv Price Performance

The stock has a market capitalization of $8.11 billion, a P/E ratio of 12.99, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.79 and a current ratio of 1.03. The stock has a 50-day simple moving average of $117.91 and a 200 day simple moving average of $119.17.

About Autoliv

Autoliv, Inc NYSE: ALV develops and manufactures automotive safety systems and components for vehicle manufacturers worldwide. The company focuses primarily on passive safety products designed to help protect occupants during a collision.

Its product portfolio includes airbags, seat belts, steering wheels, pedestrian protection systems, and associated safety electronics and control systems. Autoliv supplies these products to major automakers and supports vehicle programs across passenger cars and commercial vehicles.

Autoliv traces its roots to Sweden and has grown into an international automotive supplier with operations and customers across North America, Europe, Asia, and other major automotive markets.

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