The Aptiv PLC (NYSE:APTV) Yearly Results Are Out And Analysts Have Published New Forecasts

Simply Wall St.
09 Feb

Investors in Aptiv PLC (NYSE:APTV) had a good week, as its shares rose 2.7% to close at US$64.10 following the release of its annual results. Results were roughly in line with estimates, with revenues of US$20b and statutory earnings per share of US$6.96. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Aptiv

NYSE:APTV Earnings and Revenue Growth February 9th 2025

Taking into account the latest results, Aptiv's 21 analysts currently expect revenues in 2025 to be US$20.0b, approximately in line with the last 12 months. Statutory earnings per share are forecast to tumble 23% to US$5.82 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$20.0b and earnings per share (EPS) of US$5.90 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$80.53, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aptiv, with the most bullish analyst valuing it at US$105 and the most bearish at US$60.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Aptiv's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 9.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Aptiv is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Aptiv going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Aptiv (1 can't be ignored!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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