NYSE$ALV

Autoliv Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net sales and profitability increased due to demand recovery and cost reduction activities.

Autoliv's Q3 2020 results were better than Q3 2019, with net sales of $2,037 million and adjusted EPS of $1.48. Organic sales grew by 0.4%, and the adjusted operating margin was 10.1%. The company also generated strong cash flow, with operating cash flow of $352 million and free cash flow of $276 million.

  • Organic sales increased by 0.4%, outperforming global light vehicle production by 4.7 percentage points.
  • Adjusted operating margin improved compared to both Q2 2020 and Q3 2019.
  • Operating cash flow and free cash flow were significantly above Q3 2019 levels.
  • Net debt declined compared to the previous year, and the debt leverage ratio improved compared to Q2 2020.

Headline financials

Total Revenue

$2.04B

Previous: $2.03B+0.5%
EPS (adj)

$1.48

Previous: $1.30+13.8%
Operating margin

8.6%

No prior period
Adjusted operating margin

10.1%

No prior period
Operating cash flow

$352M

Previous: $195M+80.3%
Capital Expenditures

-$232M

Previous: -$360M+35.7%
Free Cash Flow

-$133M

Previous: -$275M+51.5%
Net Income

$98.3M

Previous: $85.4M+15.1%
Operating Income

$175M

Previous: $154M+13.5%
Gross Profit

$400M

Previous: $379M+5.4%
Cash & Equivalents

$1.48B

Previous: $334M+341.5%
Total Assets

$7.83B

Previous: $6.59B+18.9%

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.04B

Q3 2020+0.5%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Autoliv anticipates a net sales decline of around 14.5% and an organic sales decline of around 13% for the full year 2020. They expect an adjusted operating margin of around 6%.

Tailwinds

  • Outperformance in all major regions.
  • Further pick up of outperformance in the fourth quarter.
  • Full year outperformance of around 6pp.
  • Structural Efficiency Programs are on track and delivering savings.
  • Improved efficiency, optimizing footprint and implementing strategic initiatives outlined last year to support next year being a solid stepping stone on the journey to our 2022-24 targets.

Headwinds

  • Continuing uncertainty in the automotive markets.
  • Based on customer call-offs and light vehicle production according to IHS.
  • Tax rate around 40%.
  • Operating cash flow below 2019 level.
  • Leverage ratio at year end above target range.

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 Q3 2020

Historical avgQ3 2020

+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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