Aptiv (NYSE:APTV) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Aptiv (NYSE:APTV) released its quarterly earnings results on Tuesday. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.09, FiscalAI reports. The business had revenue of $3.20 billion during the quarter, compared to analysts’ expectations of $3.17 billion. Aptiv had a return on equity of 15.44% and a net margin of 4.60%. The company’s revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.17 EPS.

Here are the key takeaways from Aptiv’s conference call:

• Aptiv reported 2% adjusted revenue growth to $3.2 billion in Q3, while adjusted EBITDA margin fell 140 basis points to 18% due to product mix, lower software revenue, commodity pressures, and growth investments.
• New business awards reached more than $13 billion year to date, including strong growth in China exports, European Intelligent Systems bookings, and non-automotive markets such as data centers, robotics, drones, energy storage, and aerospace and defense.
• Aptiv plans to repurchase at least $650 million of stock in 2026 and return 100% of free cash flow to shareholders through at least the end of 2027, reflecting management’s view that the shares are undervalued.
• Management is taking a cautious view of 2027 because of semiconductor and memory-chip inflation, tariffs, supply-chain disruptions, vehicle affordability pressures, and weaker production at two German luxury OEMs; the company expects a flat to slightly positive year before revenue growth reaccelerates in 2028.
• Aptiv is evaluating its business and product portfolio and plans to provide an update in the first quarter of 2027, while continuing to invest in non-automotive growth and supply-chain resilience.

Aptiv Stock Performance

NYSE APTV opened at $43.37 on Thursday. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.97 and a quick ratio of 1.33. The company has a market cap of $9.00 billion, a P/E ratio of 11.95, a P/E/G ratio of 0.80 and a beta of 1.43. The stock has a 50-day moving average of $44.36 and a two-hundred day moving average of $59.35. Aptiv has a 1-year low of $41.11 and a 1-year high of $88.93.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on APTV shares. Wells Fargo & Company reduced their price objective on shares of Aptiv from $77.00 to $66.00 and set an “overweight” rating on the stock in a report on Wednesday, August 5th. Argus set a $64.00 target price on shares of Aptiv in a research note on Thursday, August 13th. TD Cowen dropped their price target on shares of Aptiv from $77.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday. Zacks Research downgraded shares of Aptiv from a “hold” rating to a “strong sell” rating in a research note on Monday, August 10th. Finally, Fox Advisors downgraded shares of Aptiv from an “overweight” rating to an “equal weight” rating in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Aptiv currently has a consensus rating of “Moderate Buy” and an average price target of $69.45.

Key Aptiv News

Here are the key news stories impacting Aptiv this week:

• Positive Sentiment: Aptiv reported Q3 adjusted earnings of $1.42 per share, above the $1.33 consensus, and revenue of $3.20 billion, ahead of estimates and up 2.3% year over year. Aptiv Q3 earnings and revenues top estimates
• Positive Sentiment: The company set a $20 billion bookings target for 2026 and plans to return 100% of free cash flow to shareholders through 2027, offering a potential support for investor sentiment. Aptiv outlines bookings target and capital-return plan
• Neutral Sentiment: Several firms maintained favorable ratings despite trimming their targets: BNP Paribas Exane reaffirmed Outperform, while TD Cowen kept Buy, RBC kept Outperform, and Barclays kept Overweight. The lower targets nevertheless signal more cautious expectations. BNP Paribas Exane reaffirms Outperform
• Negative Sentiment: Analysts lowered targets across the board: Goldman Sachs cut its target to $54 from $61; Morgan Stanley to $45 from $55; TD Cowen to $72 from $77; RBC to $64 from $77; BNP Paribas Exane to $59 from $63; and Barclays to $53 from $60. The broad revisions may temper enthusiasm for the earnings beat. Goldman Sachs cuts Aptiv price target
• Negative Sentiment: Despite beating quarterly estimates, EPS fell from $2.17 a year earlier, and reports described margin pressure and a lackluster profit outlook as key concerns. Solid Q3 results overshadowed by profit outlook

About Aptiv

Aptiv PLC (NYSE: APTV) is a global automotive technology company that develops systems and software intended to make vehicles safer, more connected and increasingly automated. Its solutions are used by automakers in passenger vehicles and commercial vehicles worldwide.

The company’s product portfolio includes advanced driver-assistance and active-safety systems, vehicle computing platforms, infotainment and connectivity technologies, automated-driving solutions, and electrical and electronic distribution systems.