Autoliv Inc. (NYSE: ALV) Reports Q3 Earnings, Faces Market Challenges

• Earnings per Share (EPS) of $1.84 fell short of the estimated $1.95, marking an earnings surprise of -8%.
• Revenue for the quarter was $2.56 billion, slightly exceeding the Zacks Consensus Estimate of $2.54 billion.
• Full-year 2024 organic sales growth forecast revised down to approximately 1% from the earlier projection of 2%.

Autoliv Inc. (NYSE:ALV) is a leading manufacturer of automotive safety systems, including airbags, seatbelts, and steering wheels. The company operates globally, with a significant presence in markets like Europe, North America, and Asia. Autoliv faces competition from other automotive safety suppliers such as ZF Friedrichshafen AG and Joyson Safety Systems.

On October 18, 2024, Autoliv reported its third-quarter earnings, revealing an earnings per share (EPS) of $1.84. This figure fell short of the estimated $1.95, marking an earnings surprise of -8%. Despite this, the EPS showed an 11% increase from the previous year, when it was $1.66. The company's revenue for the quarter was $2.56 billion, slightly exceeding the Zacks Consensus Estimate of $2.54 billion, but still below the expected $2.73 billion.

Autoliv's organic sales decreased by 0.8% year over year, missing the anticipated growth of 1.5%. This decline was primarily due to a negative light vehicle production mix in China. The company's adjusted operating income was $237 million, a 2.3% decrease from the previous year, with an adjusted operating margin of 9.3%, slightly down from 9.4% in the prior year. This decline was attributed to lower gross profit and increased selling, general, and administrative costs.

Looking forward, Autoliv has revised its full-year 2024 organic sales growth forecast to approximately 1%, down from the earlier projection of 2%. This adjustment reflects the challenges the company faces in the current market environment. Despite these challenges, Autoliv's stock is currently priced at $98.32, reflecting a decrease of 1.2% or $1.20. The stock has fluctuated between a low of $97.69 and a high of $100.10 during the trading day.