Aptiv PLC (NYSE:APTV) reported mixed Q4 results and 2022 guidance with better-than-expected top-line growth above market but steeper cost pressure in margins, showcasing the company’s reality for the next 12-24 months.

The company continues to benefit from solid acceleration of its revenue and bookings tied to electrification and active safety. According to the analysts at Deutsche Bank, this is likely to continue for years to come in light of 2021’s record bookings and the company’s goals to book at least as much in 2022.

At the same time, however, the company is seeing pressure not only from temporary supply chain disruptions, but also from inflation in costs of chips and electronic components which could be stickier. The analysts raise their 2022 revenue estimate towards the high-end of company guidance but expect margin expansion to remain constrained by costs, estimating $4.25 of EPS in 2022 and $6.55 in 2023.