Adient Reports Q1 Beat, But Left 2022 Guidance Unchanged
Adient plc (NYSE:ADNT) reported its Q1 results, with adjusted EBITDA coming in at $146 million, well above the Street estimate of $93 million, as the impact from ongoing supply chain constraints was partly offset by a lower-than-anticipated hit from commodity inflation due to better commercial recoveries from customers. Quarterly revenue was $3.5 billion, compared to the consensus estimate of $3.1 billion, helped by an improved vehicle mix including new EV entrant programs in Asia.
Despite strong results, the company left its initial full 2022-year guidance unchanged, calling for EBITDA modestly down compared to 2021’s $810 million.
Analysts at Deutsche Bank provided their views on the company following the results, stating that they now see upside to the unchanged 2022 outlook. The analysts continue to expect considerable EBITDA growth in 2023 and later, and with 2022 de-risked, view the company as one of the best plays in the US supplier group for a multi-year industry volume rebound, capitalizing on its operating leverage from large improvement in revenue, materially reduced inefficiencies from higher capacity utilization, and recovery of commodities headwinds.
| Symbol | Price | %chg |
|---|---|---|
| ASII.JK | 4800 | 0 |
| MASA.JK | 5425 | 0 |
| 012330.KS | 227000 | 0 |
| AUTO.JK | 1970 | 0 |
Adient Shares Up 4% Following Q3 EPS Beat
Adient (NYSE:ADNT) shares rose more than 4% on Monday following the company’s reported Q3 results, with EPS of $0.08 coming in better than the Street estimate of ($0.04).
According to the analysts at Deutsche Bank, the company’s latest guidance trim should help de-risk the 2022 outlook, and enable investors to focus on 2023 when industry volume recovery could contribute to significant EBITDA growth.
The analysts now forecast 2022 sales of $14.0 billion (down from $14.1 billion) and EBITDA of $647 million (down from $681 million), in line with management’s latest guidance range.
Looking ahead, the analysts still believe the company could recover a significant portion of the $600 million in cost inefficiencies it has identified, as industry volumes rebound and production schedules stabilize, although this could be partly offset by headwinds from FX and rising energy costs, particularly in Europe. Accordingly, the analysts reduced their 2023 sales/EBITDA estimates to $15.5 billion/$964 million (6.2% margin), from $15.8 billion/$1.002 billion (6.4% margin) previously, still representing considerable growth from 2022.
The analysts believe the company is very well positioned to benefit from industry volume rebound, reduced inefficiencies from higher capacity utilization, and its relatively successful recovery of commodities headwinds, but it certainly remains exposed to some persistent industry and macro headwinds.
Adient Reports Q1 Beat, But Left 2022 Guidance Unchanged
Adient plc (NYSE:ADNT) reported its Q1 results, with adjusted EBITDA coming in at $146 million, well above the Street estimate of $93 million, as the impact from ongoing supply chain constraints was partly offset by a lower-than-anticipated hit from commodity inflation due to better commercial recoveries from customers. Quarterly revenue was $3.5 billion, compared to the consensus estimate of $3.1 billion, helped by an improved vehicle mix including new EV entrant programs in Asia.
Despite strong results, the company left its initial full 2022-year guidance unchanged, calling for EBITDA modestly down compared to 2021’s $810 million.
Analysts at Deutsche Bank provided their views on the company following the results, stating that they now see upside to the unchanged 2022 outlook. The analysts continue to expect considerable EBITDA growth in 2023 and later, and with 2022 de-risked, view the company as one of the best plays in the US supplier group for a multi-year industry volume rebound, capitalizing on its operating leverage from large improvement in revenue, materially reduced inefficiencies from higher capacity utilization, and recovery of commodities headwinds.
