Aptiv PLC APTV is set to report second-quarter 2018 results on Jul 31 before the bell.
The company has an Earnings ESP of +0.02% and a Zacks Rank #3 (Hold), a combination that increases odds of an earnings beat. This is because, per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.
Aptiv’s surprise history has been impressive as the company beat estimates in three of the last four quarters, delivering an average beat of 3.5%.
So far this year, the stock has rallied 10.7%, outperforming the S&P 500’s 5.7% gain.
Let’s see how things are shaping up for this announcement
Recap of the First-Quarter Performance
Aptiv’s first-quarter earnings and revenues came ahead of the Zacks Consensus Estimate.
Adjusted earnings of $1.29 per share improved 19% year over year on the back of strong operating performance. Revenues came in at $3.6 billion and were up 15% from the year-ago quarter, courtesy of strong segmental performance.
What We Are Watching?
Aptiv’s Advanced Safety and User Experience segment remains strong backed by significant wins across the portfolio. Recently, the company launched a fleet of 30 autonomous vehicles on the Lyft network in Las Vegas. This partnership is a strong indication of Aptiv’s progress toward commercialization.
Aptiv PLC Revenue (TTM)
The Signal and Power Solutions segment is also in good shape, courtesy of solid growth across cable management and fastening solutions. The segment added accretive bolt-on engineered components with the KUM acquisition. This acquisition is expected to complement Aptiv’s robust growth in the Asia-Pacific region.
We remain positive about Aptiv’s technology investments, acquisitions and collaborations that help it capitalize on developing automotive markets.
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector that investors may consider as our model shows that these also have the right combination of elements to beat on earnings in second-quarter 2018:
Clean Harbors CLH has an Earnings ESP of +1.67% and a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ICF International ICFI has an Earnings ESP of +0.11% and a Zacks Rank #2. The company is slated to report quarterly results on Aug 2.
Stericycle SRCL has an Earnings ESP of +0.77% and a Zacks Rank #3. The company is slated to report quarterly results on Aug 2.
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