Auto-parts supplier Aptiv beats quarterly earnings estimates, shares rise

Aptiv topped Wall Street’s expectations for second-quarter earnings, aided by strong demand from automakers, sending shares of the auto-parts supplier more than 5 per cent up in premarket trading.
The company also authorized a new $5 billion share repurchase program and said it would immediately proceed with a $3 billion buy back, and fund that with cash on hand and debt.
Aptiv, which counts Toyota, BMW and the Detroit Three automakers as customers, has benefited from manufacturers building more crossovers and trucks to capitalize on demand from their customers.
On an adjusted basis, the company earned $1.58 per share in the second quarter ended June 30, compared with analysts’ average estimate of $1.42 per, according to LSEG data.
Its overall revenue, however, fell nearly 3 per cent to $5.05 billion, compared with LSEG estimates of $5.31 billion.
Supply chain shortages coupled with automakers inching away from their EV ambitions has impacted demand for electrified parts.
In May, Aptiv said it would reduce its equity interest in its self-driving joint venture, Motional, with Hyundai Motor.
Motional uses Hyundai’s IONIQ5 electric car and is working to build a driverless cab.