Company Overview - Adient (ADNT) is expected to report quarterly earnings of $0.56 per share, reflecting a year-over-year increase of +9.8% despite anticipated revenues of $3.48 billion, which is a decrease of 6.6% from the previous year [3][10] - The consensus EPS estimate has been revised down by 7.61% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] Earnings Expectations - The upcoming earnings report is scheduled for November 8, and the stock price may increase if actual results exceed expectations, while a miss could lead to a decline [2][10] - The Earnings ESP (Expected Surprise Prediction) for Adient is -8.52%, suggesting a lower Most Accurate Estimate compared to the Zacks Consensus Estimate, complicating predictions of an earnings beat [10] Historical Performance - In the last reported quarter, Adient was expected to post earnings of $0.67 per share but only achieved $0.32, resulting in a surprise of -52.24% [11] - Over the past four quarters, Adient has only beaten consensus EPS estimates once, indicating a challenging track record [12] Industry Context - American Axle & Manufacturing (AXL), another player in the automotive sector, is expected to report earnings of $0.01 per share, showing a year-over-year change of +109.1%, with revenues projected at $1.51 billion, down 2.5% from the previous year [16] - Despite a significant downward revision of 337.8% in the consensus EPS estimate for American Axle, it has a Zacks Rank of 2 (Buy), which may influence its earnings performance [17]

Core Insights - Adient plc is a leading automotive seating supplier with a strong international presence and established relationships with major global OEMs [1][2] Group 1: Company Performance - Adient's diverse customer base and international operations have strengthened its market position, with a focus on launch execution to secure new business [2] - The company has a competitive advantage due to its strong relationships with Japanese and Asian OEMs, which are expected to drive opportunities in hybrid and battery electric vehicle launches [3] - Adient's anticipated fiscal 2024 revenues are projected to be around $14.6 billion, a decrease from the previous estimate of $14.8-$14.9 billion due to declining light vehicle production and unfavorable customer program mix [4] Group 2: Investment and Competition - Rising competition necessitates significant investments in technology and new products, with Adient planning to spend $285 million on capital expenditures in fiscal 2024, up from $252 million in fiscal 2023 [5] - The company faces competition from other automotive suppliers and OEMs, including Lear Corporation and Magna International Inc, which may impact its market share and profitability [5]

Company Overview - Adient is a global leader in automotive seating with over 70,000 employees across 29 countries [2] - The company operates more than 200 manufacturing and assembly plants worldwide [2] - Adient produces and delivers automotive seating for all major OEMs, covering the entire seat-making process from research and design to engineering and manufacturing [2] Upcoming Financial Event - Adient will host a conference call on November 8, 2024, at 8:30 a.m. (ET) to discuss its fourth quarter fiscal 2024 financial results [1] - A live webcast of the call and presentation materials will be available on the Adient Investor Relations website [1] - Participants can join the call by dialing 888-566-1827 (U.S.) or 773-799-3976 (international) 15 minutes prior to the start time [1]

Core Viewpoint - Adient's recent earnings report showed a significant decline in both earnings and revenue, leading to a downward revision of guidance for fiscal 2024, indicating potential challenges ahead for the company [2][6]. Financial Performance - Adient reported adjusted earnings per share (EPS) of 32 cents for Q3 fiscal 2024, down from 98 cents in the same period last year, and missed the Zacks Consensus Estimate of 67 cents [2]. - The company generated net sales of $3.72 billion, an 8% decrease year over year, and also missed the Zacks Consensus Estimate of $3.81 billion [2]. Segmental Performance - The Americas segment recorded revenues of $1.74 billion, an 8.6% decline year over year, missing the Zacks Consensus Estimate of $1.76 billion, but adjusted EBITDA increased to $99 million from $95 million [3]. - The EMEA segment's revenues were $1.29 billion, down 10.4% year over year, missing the Zacks Consensus Estimate of $1.35 billion, with adjusted EBITDA dropping significantly to $25 million from $103 million [4]. - The Asia segment reported revenues of $712 million, a 4% decline year over year, missing the Zacks Consensus Estimate of $729 million, while adjusted EBITDA rose 1% to $101 million [4]. Financial Position - As of June 30, 2024, Adient had cash and cash equivalents of $890 million, down from $1.11 billion as of September 30, 2023 [5]. - Long-term debt stood at $2.4 billion, with capital expenditures totaling $70 million compared to $60 million in the prior-year quarter [5]. Revised Guidance - Adient revised its fiscal 2024 revenue guidance to $14.6 billion, down from the previous estimate of $14.80-$14.90 billion, and adjusted EBITDA is now estimated at $870 million, down from $900-$920 million [6]. Market Position - Adient has a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [9]. - The company has an average Growth Score of C and a Momentum Score of D, but a strong value score of A, placing it in the top quintile for this investment strategy [8].

证 券 研 究 报 告 安道拓（ADNT）FY24Q3 业绩点评及业绩说明会纪要 会议时间：2024 年 8 月 6 日 EMEA 地区盈利承压，亚太区较稳健 会议地点：电话会议 ❖ 事项： 2024 年 8 月 6 日安道拓发布 2024 财年第三财季报告，并召开业绩说明会。公 司 FY2024Q3 截至 2024 年 6 月 30 日，与自然季度 CO2024Q2 相近，以下表 述均为自然季度。 ❖ 评论： 1. 营收： 1) 24Q2 公司营收约 37 亿美元、同比-8%，其中销量和定价下降影响 2.85 亿 美元，汇率变动影响 0.54 亿美元； 2) 24Q2 美洲区营收同比下降 8%，主要受销量减少和产品结构变化的影响； 3) 24Q2 EMEA 地区营收同比下降 9%，主要受市场需求疲软、客户产量下 降的影响； 4) 24Q2 亚洲区营收同比增长 1%，其中中国营收同比增长 6%； 5) 24Q2 公司合并前的座椅收入经外汇调整后同比增长 8%。 2. 盈利： 1) 24Q2 公司调整后净利润为 2900 万美元、同比-69%； 2) 24Q2 公司调整后 EBITDA 为 2.02 亿美元、同 ...

Core Viewpoint - Adient reported a decline in adjusted earnings per share (EPS) and net sales for the third quarter of fiscal 2024, missing consensus estimates [1] Financial Performance - Adjusted EPS for Q3 2024 was 32 cents, down from 98 cents in the same period last year, and below the Zacks Consensus Estimate of 67 cents [1] - Net sales totaled $3.72 billion, an 8% decrease year over year, and also missed the Zacks Consensus Estimate of $3.81 billion [1] Segmental Performance - **Americas Segment**: Revenues were $1.74 billion, an 8.6% decline year over year, missing the estimate of $1.76 billion. Adjusted EBITDA increased to $99 million from $95 million, exceeding the estimate of $67 million due to efficiencies [2] - **EMEA Segment**: Revenues fell to $1.29 billion, a 10.4% decline year over year, missing the estimate of $1.35 billion. Adjusted EBITDA dropped significantly to $25 million from $103 million, missing the estimate of $91 million due to lower customer releases [3] - **Asia Segment**: Revenues were $712 million, down 4% year over year, missing the estimate of $729 million. Adjusted EBITDA rose 1% to $101 million, beating the estimate of $95 million due to efficiencies [3] Financial Position - Cash and cash equivalents stood at $890 million as of June 30, 2024, down from $1.11 billion as of September 30, 2023 [4] - Long-term debt was reported at $2.4 billion [4] - Capital expenditures totaled $70 million, an increase from $60 million in the prior-year quarter [4] - The company repurchased approximately 2.6 million shares for $75 million during the quarter [4] Revised Guidance for 2024 - Adient revised its fiscal 2024 revenue guidance to $14.6 billion, down from the previous range of $14.80-$14.90 billion [5] - Adjusted EBITDA is now estimated at $870 million, reduced from the prior guidance of $900-$920 million [5] - Free cash flow is anticipated to be $250 million, with capital expenditures and cash tax estimates adjusted to $285 million and $100 million, respectively [5]

Core Viewpoint - Adient plc's Q3 FY 2024 results were disappointing, primarily due to underperformance in the EMEA segment, but a potential turnaround is anticipated in FY 2025 based on a positive outlook for the European automotive industry [1][4]. Financial Performance - Q3 FY 2024 results showed revenue, normalized EBITDA, and non-GAAP adjusted EPS were -3%, -12%, and -49% below consensus forecasts, respectively [3]. - Year-over-year (YoY) comparisons for Q3 FY 2024 indicated a decrease in top line by -8%, non-GAAP adjusted EBITDA by -27%, and normalized EPS by -67% [3]. - The EMEA segment's non-GAAP adjusted EBITDA fell by -76% YoY to $25 million, while the Americas and Asia segments saw increases of +4% and +1%, respectively [3]. Guidance and Outlook - Full-year FY 2024 revenue and non-GAAP adjusted EBITDA guidance were revised downwards by -2% and -4% to $14.6 billion and $870 million, respectively [3]. - Q4 FY 2024 is expected to see declines of -7% YoY in revenue and -4% YoY in normalized EBITDA [3]. - The company is proceeding with caution in the European market due to declining volume and insourcing issues [3]. Future Prospects - Consensus data suggests a +3% revenue growth and +11% EBITDA growth for FY 2025, contrasting with FY 2024's expected declines [5]. - The European automotive manufacturing volume is projected to rebound by +2.3% in 2025 after a -3.0% decrease in 2024 [5]. - Adient is taking steps to optimize costs and improve profitability in the EMEA segment, with plans to assess customer relationships for better efficiency [5]. Valuation - Adient's stock is currently valued at 5.5 times trailing twelve months' EV/EBITDA, close to its historical mean of 6.3 times [6]. - The consensus annualized EBITDA growth rate estimate for FY 2023-2027 is projected at +6.6% [6].

Core Insights - Adient reported $3.72 billion in revenue for the quarter ended June 2024, marking an 8.4% year-over-year decline and an EPS of $0.32 compared to $0.98 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.81 billion, resulting in a surprise of -2.53%, while the EPS surprise was -52.24% against a consensus estimate of $0.67 [1] Revenue and Earnings Performance - Light Vehicle Production in North America was 4.2 million, exceeding the average estimate of 3.95 million [3] - Light Vehicle Production in China was 7 million, slightly below the average estimate of 7.28 million [4] - Light Vehicle Production in EMEA was 4.4 million, close to the average estimate of 4.47 million [5] - Light Vehicle Production in South America was 0.7 million, compared to the average estimate of 0.73 million [6] - Net Sales in Asia were $712 million, below the estimated $728.63 million, reflecting a -4% change year-over-year [7] - Net Sales from Eliminations were -$21 million, better than the estimated -$25.52 million, showing a -16% change year-over-year [8] - Net Sales in the Americas were $1.74 billion, slightly below the average estimate of $1.76 billion, with an -8.6% year-over-year change [9] - Net Sales in EMEA were $1.29 billion, under the average estimate of $1.35 billion, representing a -10.4% year-over-year change [10] Stock Performance - Adient shares have returned -8.3% over the past month, compared to the Zacks S&P 500 composite's -5.9% change, with a current Zacks Rank of 5 (Strong Sell) indicating potential underperformance in the near term [11]

Financial Performance - Adient recorded net sales of $3,716 million for Q3 2024, a decrease of $339 million or 8.4% compared to Q3 2023, primarily due to lower production volumes and unfavorable currency impacts[137]. - Gross profit for Q3 2024 was $207 million, representing 5.6% of net sales, down from $302 million or 7.4% in Q3 2023, attributed to lower production volumes and unfavorable material economics[138]. - Net loss attributable to Adient was $11 million in Q3 2024, compared to a net income of $73 million in Q3 2023, driven by lower production volumes and higher restructuring costs[139]. - Adient's net sales for the first nine months of fiscal 2024 decreased by $540 million or 5% compared to the same period in fiscal 2023, largely due to production disruptions and softening demand[142]. - Comprehensive loss attributable to Adient was $78 million for Q3 2024, a decrease of $84 million compared to a comprehensive income of $6 million in Q3 2023[160]. - For the first nine months of fiscal 2024, comprehensive loss was $88 million, down $249 million from a comprehensive income of $161 million in the same period of fiscal 2023[161]. - Net sales for the first nine months of fiscal 2024 were $11,126 million, down 6% from $11,666 million in the same period of fiscal 2023[170]. - Net loss attributable to Adient was $61 million for the first nine months of FY2024, compared to net income of $70 million for the same period in FY2023[159]. Segment Performance - Global light vehicle production increased by 0.5% to 22.1 million units in Q3 2024, with North America showing a 2.4% increase, while South America experienced a decline of 12.5%[136]. - The EMEA segment faced persistent operational challenges, contributing to a 4.3% decline in vehicle production in that region[135]. - EMEA segment net sales decreased by 10% in Q3 2024 to $1,288 million, down from $1,438 million in Q3 2023[174]. - Adjusted EBITDA for the EMEA segment in Q3 2024 was $25 million, a decline of 76% from $103 million in Q3 2023[174]. Costs and Expenses - Restructuring and impairment costs rose significantly to $16 million in Q3 2024, compared to $6 million in Q3 2023, indicating increased operational challenges[140]. - Cost of sales decreased by $244 million, or 7%, and gross profit decreased by $95 million, or 31%, in Q3 FY2024 compared to Q3 FY2023[143]. - SG&A expenses decreased by $27 million, or 18%, in Q3 FY2024 compared to Q3 FY2023, primarily due to lower net engineering and administrative spending[145]. - Restructuring and impairment costs increased by $10 million in Q3 FY2024 and by $122 million in the first nine months of FY2024 due to restructuring actions in EMEA[147]. - Cost of sales decreased by $440 million, or 4%, and gross profit decreased by $100 million, or 13%, in the first nine months of FY2024 compared to the same period in FY2023[144]. - SG&A for the first nine months of FY2024 decreased by $44 million, or 10%, compared to the first nine months of FY2023[146]. Cash Flow and Financing - Cash provided by operating activities decreased to $280 million in the first nine months of fiscal 2024, down from $373 million in the prior year[189]. - Adient incurred $152 million in restructuring costs during the first nine months of fiscal 2024, with expected annual operating cost reductions of approximately $100 million upon completion of the 2024 Plan[192][193]. - As of June 30, 2024, Adient had $923 million available under its asset-based revolving credit facility[183]. - The Term Loan B Agreement had an outstanding balance of $633 million as of June 30, 2024, with a maturity extended to January 31, 2031[184]. Market Conditions - The automotive industry is experiencing softening consumer demand and lower vehicle production, impacting Adient's financial results[164]. - The automotive industry has faced significant volatility in commodity costs, including steel and petrochemical prices, which may continue to impact Adient's input costs[197]. - Adient has historically managed to offset inflation effects through operating efficiencies, despite experiencing moderate cost increases[197]. Monitoring and Risk - The company is closely monitoring the financial results of its EMEA segment for potential implications on long-lived asset recoverability[134]. - Adient is closely monitoring the EMEA segment for potential impairment of long-lived assets, including goodwill, due to unfavorable trends[164]. - As of June 30, 2024, there have been no material changes to Adient's critical accounting estimates and policies since the fiscal year ended September 30, 2023[198]. - Adient has not experienced adverse changes in market risk exposures that materially affected its disclosures as of June 30, 2024[200].

Company Performance - Adient reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.67 per share, and down from $0.98 per share a year ago, representing an earnings surprise of -52.24% [1] - The company posted revenues of $3.72 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.53%, and down from $4.06 billion year-over-year [1] - Over the last four quarters, Adient has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [1] Stock Performance - Adient shares have declined approximately 37.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [2] - The current Zacks Rank for Adient is 5 (Strong Sell), indicating expectations of underperformance in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $3.54 billion, and for the current fiscal year, it is $2.14 on revenues of $14.77 billion [4] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [4] Industry Context - The Automotive - Original Equipment industry, to which Adient belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment [5] - Strattec Security, another company in the same industry, is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 24%, with revenues projected at $141.51 million, up 7% from the previous year [5]