NYSE$ALV

Autoliv Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Autoliv's Q3 2023 performance was highlighted by increased sales and improved profitability.

Autoliv reported strong Q3 2023 results, with organic sales growth significantly outperforming LVP growth and adjusted operating income reaching a new third-quarter record since 2018. The company saw improvements across key areas, including gross and operating margin, labor efficiency, and SG&A and RD&E costs relative to sales. Strong cash flow and debt leverage were maintained, along with a dividend payout and increased share repurchases.

  • Organic sales growth outperformed global LVP growth by 7 percentage points, driven by new product launches and higher prices.
  • Profitability improved due to price increases, organic growth, and cost reduction activities, resulting in an adjusted operating margin increase from 7.5% to 9.4%.
  • Operating cash flow remained strong at $202 million, though declining due to temporary negative working capital effects.
  • The company detailed intentions to reduce its indirect workforce by up to 2,000 and is reorganizing global functions and European operations to reduce the normalized tax rate.

Headline financials

Total Revenue

$2.6B

Previous: $2.3B+12.8%
EPS (adj)

$1.66

Previous: $1.23+35.0%
Operating margin

8.9%

Previous: 7.4%+20.3%
Adjusted operating margin

9.4%

Previous: 7.5%+25.3%
ROCE

24.2%

Previous: 18.0%+34.4%
Capital Expenditures

-$420M

Previous: -$418M-0.5%
Free Cash Flow

-$286M

Previous: -$313M+8.6%
Net Income

$134M

Previous: $105M+27.6%
Operating Income

$232M

Previous: $171M+35.7%
Gross Profit

$465M

Previous: $383M+21.4%
Cash & Equivalents

$475M

Previous: $483M-1.7%
Total Assets

$7.99B

Previous: $7.33B+8.9%

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.6B

Q3 2023+12.8%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Autoliv anticipates continued improvements in supply chain stability, albeit slower than initially expected, and expects a Q4 adjusted operating margin improvement year-over-year of around 1.5-2pp. The company is confident in delivering a substantial full-year increase in sales, operating cash flow, and adjusted operating income.

Tailwinds

  • Full year 2023 global LVP growth of around 7%.
  • Achievement of targeted cost compensation effects.
  • Reduction of customer call-off volatility.
  • Organic sales growth around 17%.
  • Around 1% positive FX effect on net sales.

Headwinds

  • UAW strike is not prolonged beyond what is included in the S&P Global October outlook.
  • Cost pressures from labor, logistics, utilities, and other items.
  • Continued cost pressure from broad-based inflation relating to labor, logistics, utilities and other items, especially in Europe.
  • The improvement is slower than we had expected, as it deteriorated somewhat in Europe in Q3.
  • Adverse FX development.

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 2023

Historical avgQ3 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro