Autoliv (NYSE:ALV) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Autoliv (NYSE:ALV) released its quarterly earnings results on Friday. The auto parts company reported $2.19 EPS for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.04), FiscalAI reports. The business had revenue of $2.69 billion during the quarter, compared to analysts’ expectations of $2.73 billion. Autoliv had a net margin of 5.79% and a return on equity of 29.36%. The company’s quarterly revenue was down .5% compared to the same quarter last year. During the same quarter last year, the business posted $2.32 earnings per share.

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

• Positive Sentiment: Autoliv reported a resilient third quarter, with sales virtually unchanged despite a 1.9% decline in global light-vehicle production. Adjusted operating margin was 9.7%, ahead of prior indications, supported by productivity gains, cost reductions, and higher engineering income.
• Positive Sentiment: Asia remained a key growth driver: sales to Chinese OEMs outperformed their production growth by nearly 20 percentage points, while organic sales in India rose almost 30%. Autoliv expects continued significant outperformance of the broader vehicle market.
• Negative Sentiment: Raw-material inflation and higher logistics costs created a $42 million gross headwind in the quarter, while tariffs reduced adjusted operating margin by roughly 35 basis points even after customer compensation. The company expects similar raw-material pressure to continue into 2027.
• Neutral Sentiment: Autoliv reiterated flat 2026 organic sales and operating cash flow guidance of approximately $1.2 billion, but narrowed adjusted operating-margin guidance to around 10.5%, the low end of its previous 10.5%–11% range. Fourth-quarter profitability is expected to improve sequentially through higher volumes, engineering income, cost actions, and customer recoveries.
• Positive Sentiment: The company continued returning capital to shareholders, repurchasing $150 million of stock and paying $63 million in dividends during the quarter. It also opened a second Chinese R&D center and launched a virtual safety-development platform, supporting longer-term innovation and growth opportunities.

Autoliv Stock Down 3.6%

ALV opened at $114.54 on Friday. The company has a fifty day moving average of $117.76 and a two-hundred day moving average of $119.14. The stock has a market capitalization of $8.39 billion, a price-to-earnings ratio of 13.73, a PEG ratio of 0.95 and a beta of 1.39. Autoliv has a fifty-two week low of $99.16 and a fifty-two week high of $132.17. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.79 and a current ratio of 1.03.

Autoliv Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th were issued a $0.87 dividend. The ex-dividend date of this dividend was Friday, August 28th. This represents a $3.48 dividend on an annualized basis and a yield of 3.0%. Autoliv’s payout ratio is presently 40.99%.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Wolfe Research downgraded shares of Autoliv from an “outperform” rating to a “peer perform” rating in a research note on Wednesday, September 23rd. Royal Bank Of Canada cut their target price on Autoliv from $147.00 to $146.00 and set an “outperform” rating on the stock in a research report on Monday, October 12th. Weiss Ratings lowered Autoliv from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday. Wall Street Zen lowered Autoliv from a “buy” rating to a “hold” rating in a research report on Saturday, July 4th. Finally, TD Cowen lowered shares of Autoliv from a “buy” rating to a “hold” rating and reduced their price target for the stock from $148.00 to $137.00 in a research report on Tuesday, September 8th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, Autoliv presently has a consensus rating of “Moderate Buy” and an average target price of $134.92.

Key Headlines Impacting Autoliv

Here are the key news stories impacting Autoliv this week:

• Positive Sentiment: Sales to Chinese vehicle manufacturers outperformed local vehicle production by 20 percentage points, highlighting continued momentum in an important growth market. Autoliv: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Management narrowed its full-year adjusted operating-margin outlook to approximately 10.5%, providing more clarity but also reflecting the impact of current cost pressures. Autoliv: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Third-quarter adjusted earnings were $2.19 per share, below the $2.23 FactSet consensus and $2.21 Zacks estimate, compared with $2.32 a year earlier. Autoliv Q3 Adjusted EPS
• Negative Sentiment: Revenue was $2.69 billion, missing the $2.73 billion estimate and declining 0.5% year over year. The sales and profit misses indicate softer-than-expected operating performance. Autoliv Q3 Net Sales
• Negative Sentiment: Cost headwinds weighed on the bottom line, with the earnings shortfall prompting investors to reassess near-term margin prospects. The earnings miss explains why ALV shares have decreased and traded with elevated volume. Autoliv Slides After Cost Headwinds Impact the Bottom Line

About Autoliv

Autoliv, Inc (NYSE: ALV) develops and manufactures automotive safety systems and components for vehicle manufacturers worldwide. The company focuses primarily on passive safety products designed to help protect occupants during a collision.

Its product portfolio includes airbags, seat belts, steering wheels, pedestrian protection systems, and associated safety electronics and control systems. Autoliv supplies these products to major automakers and supports vehicle programs across passenger cars and commercial vehicles.

Autoliv traces its roots to Sweden and has grown into an international automotive supplier with operations and customers across North America, Europe, Asia, and other major automotive markets.