NYSE$ALV

Autoliv Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Autoliv achieved record sales and strong profitability in Q4 2023.

Autoliv reported record sales and strong profitability in Q4 2023, with net sales of $2,751 million, an 18% increase year-over-year. Organic sales growth was 16%, outperforming global LVP growth. Profitability improved due to price increases, organic growth, and cost reduction activities. Operating cash flow remained strong at $447 million.

  • Record sales, increased organically by 16%, outperforming global LVP growth.
  • Profitability improved substantially due to price increases, organic growth, and cost reduction activities.
  • Operating cash flow remained strong at $447 million.
  • Leverage ratio improved to 1.2X despite returning $207 million to shareholders.

Headline financials

Total Revenue

$2.75B

Previous: $2.34B+17.8%
EPS (adj)

$3.74

Previous: $1.83+104.4%
Operating margin

8.6%

Previous: 9.8%-12.2%
Adjusted operating margin

12.1%

Previous: 10.0%+21.0%
ROCE

24.4%

Previous: 24.3%+0.4%
Capital Expenditures

-$152M

Previous: $167M-191.0%
Net Income

$227M

Previous: $156M+45.5%
Operating Income

$237M

Previous: $230M+3.0%
Gross Profit

$529M

Previous: $399M+32.6%
R&D Expense

$81M

No prior period

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.75B

Q4 2023+17.8%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Autoliv's 2024 guidance is based on customer call-offs, a global LVP decline of around 1%, achievement of targeted cost compensation effects, and a reduction in customer call-off volatility.

Tailwinds

  • Around 5% organic sales growth
  • Around 0% FX effect on net sales
  • Around 10.5% adjusted operating margin
  • Around $1.2 billion operating cash flow
  • Lower call-off volatility than in 2023

Headwinds

  • Full year 2024 global LVP decline of around 1%
  • Continued cost pressure from inflation relating mainly to labor
  • Unfolding situation in the Red Sea has not yet had any measurable impact on our own operations but we note near-term trends of extended transit times and increased freight tariffs and surcharges has led to some customers lowering their near term production plans.
  • Seasonality of past years is likely to be repeated in 2024, with an expected Q1 adjusted operating margin of around 7%
  • Raw material price changes in 2024 to be largely reflected in price changes in our products, albeit with delays of several months.

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 Q4 2023

Historical avgQ4 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%

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