NYSE$ALV

Autoliv Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Autoliv's sales, profits, and balance sheet showed good progress.

Autoliv reported strong Q1 2021 results with net sales of $2,242 million, a 17.9% organic sales growth, and an EPS of $1.79, which is a 108% increase. The company's operating margin was 10.6%, and adjusted operating margin was also 10.6%. Autoliv's strong cash flow and strengthened balance sheet led to a leverage ratio of 1.4x, within the target range.

  • Strong organic sales growth, fueled by good performance in all regions.
  • Strong improvement in operating income, driven by strong sales growth and continued cost control.
  • Strong cash flow and strengthened balance sheet.
  • The company reiterates full year guidance of around 20% organic sales growth and an adjusted operating margin of around 10%.

Headline financials

Total Revenue

$2.24B

Previous: $1.85B+21.5%
EPS (adj)

$1.79

Previous: $0.88+103.4%
Operating margin

10.6%

Previous: 7.3%+45.2%
Adjusted operating margin

10.6%

Previous: 7.4%+43.2%
Operating cash flow

$186M

Previous: $156M+19.2%
ROCE

26.3%

Previous: 14.5%+81.4%
Capital Expenditures

-$94M

Previous: -$89.1M-5.5%
Free Cash Flow

$63M

Previous: -$14.3M+540.6%
Net Income

$157M

Previous: $74.8M+109.9%
Operating Income

$237M

Previous: $134M+76.5%
Gross Profit

$458M

Previous: $331M+38.4%
Cash & Equivalents

$1.25B

Previous: $907M+38.2%
Total Assets

$8.21B

Previous: $6.97B+17.7%

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.24B

Q1 2021+21.5%vs Q1 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Autoliv anticipates continuing uncertainty in the automotive markets for the remainder of 2021. Despite increased industry wide supply chain challenges, the company is pleased to be able to reiterate its full year guidance of around 20% organic sales growth and an adjusted operating margin of around 10% as we expect effects of the supply chain challenges to be balanced with positive sales mix and cost reduction actions. We can see that our strategic initiatives gradually are yielding good results, and we expect 2021 to be a solid stepping stone towards our 2022-24 targets which include a significant growth above light vehicle production as well as a solid adjusted operating margin increase

Tailwinds

  • Net sales growth around 23%
  • Organic sales growth around 20%
  • Adjusted operating margin around 10%
  • Operating cash flow similar level as 2020
  • Capex, net % of sales below 6%

Headwinds

  • COVID-19 pandemic impacting business through limited light vehicle production.
  • Semiconductor and other industry supply chain disruptions, especially in North America and Europe.
  • Current industry-wide semiconductor shortage is likely to continue to negatively impact LVP.
  • Stabilization of supply may not emerge until the fourth quarter.
  • Adverse cost development from rising raw material prices throughout 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.4%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+10.0%

Q4 2017

Best reaction

-11.2%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%+4.3%+3.1%
Q4 2025-4.1%+0.1%-6.3%
Q3 2025-2.6%-4.5%-0.3%
Q2 2025+0.1%+0.9%+6.0%
Q1 2025+5.6%+4.0%+24.0%
Q4 2024-4.6%-6.8%-3.9%
Q3 2024+3.1%+2.8%+4.3%
Q2 2024-8.8%-9.9%-8.0%
Q1 2024+4.7%+4.0%+8.5%
Q4 2023+4.4%+3.4%+8.4%
Q3 2023+6.5%+7.7%+13.6%
Q2 2023+9.1%+8.9%-0.3%
Q1 2023-5.6%-6.7%-5.4%
Q4 2022+7.2%+7.8%+7.6%
Q3 2022+7.5%+7.8%+19.2%
Q2 2022+2.5%+4.2%+0.7%
Q1 2022-5.4%-6.7%-1.4%
Q4 2021+3.3%+7.3%-4.0%
Q3 2021-1.7%-0.7%+10.4%
Q2 2021-4.6%-2.2%+3.1%
Q1 2021+8.8%+7.1%+5.1%
Q4 2020+0.1%+0.1%+0.7%
Q3 2020-1.6%-10.7%+5.2%
Q2 2020-3.5%-0.9%+6.1%
Q1 2020+10.0%+9.3%+13.0%
Q4 2019+5.2%+3.2%-9.1%
Q3 2019-1.1%-5.2%-0.5%
Q2 2019+3.3%+10.4%-5.6%
Q1 2019+2.3%-2.8%-17.2%
Q4 2018-3.8%-4.7%-0.7%
Q3 2018+6.0%+4.1%+9.7%
Q2 2018+1.2%-1.9%-11.1%
Q1 2018-8.6%-6.1%+0.5%
Q4 2017+10.0%+4.5%+3.7%
Q3 2017+1.4%+2.0%+1.5%
Q2 2017-7.2%-5.9%-9.0%
Q1 2017-7.6%-6.1%+2.8%
Q4 2016-11.2%-11.3%-10.4%
Q3 2016-6.7%-6.9%-0.9%
Q2 2016-7.5%-6.1%-7.3%
Q1 2016+8.1%
Q4 2015-7.0%
Q3 2015+3.3%
Q2 2015+2.9%
Q1 2015-4.2%
Q4 2014+4.2%
Q3 2014-3.3%
Q2 2014-2.5%
Q1 2014-2.4%
Q4 2013+1.8%
Q3 2013+0.7%
Q2 2013+0.4%
Q1 2013+6.5%
Q4 2012-1.6%
Q3 2012-10.2%
Q2 2012-4.2%
Q1 2012+0.0%
Q4 2011+1.8%
Q3 2011+6.5%
Q2 2011-1.0%
Q1 2010+7.4%
Q1 2011+1.4%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2009-0.3%
Q3 2010-0.3%
Q2 2009+7.5%
Q2 2010+7.5%
Q4 2009+7.5%

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