Friday’s Consumer Pops and Drops: ATR, F, BGS, MNST, and ALV

(Continued from Prior Part)

Price movement

Autoliv (ALV) has a market cap of $10.1 billion. It rose by 7.0% and closed at $122.47 per share as of April 29, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 8.6%, 3.4%, and -1.3%, respectively, as of the same day. This means that Autoliv is trading 7.7% above its 20-day moving average, 8.6% above its 50-day moving average, and 9.7% above its 200-day moving average.

Related ETF and peers

The iShares Morningstar Mid-Cap Value ETF (JKI) invests 0.81% of its holdings in Autoliv. JKI selects from the 70%–90% range of US market capitalization, sorting value stocks based on ten factors. JKI’s YTD price movement was 6.7% as of April 28, 2016.

The market caps of Autoliv’s competitors are as follows:

• Delphi Automotive (DLPH) – $20.7 billion

• Magna International (MGA) – $17.0 billion

• Gentex Corporation (GNTX) – $4.7 billion

Performance in fiscal 1Q16

Autoliv reported fiscal 1Q16 net sales of $2,430.0 million—a rise of 11.8% compared to $2,174.1 million in fiscal 1Q15. Sales of airbag products, seatbelt products, passive safety electronic products, and active safety products rose by 12.2%, 1.6%, 17.5%, and 50.7%, respectively, in fiscal 1Q16—compared to fiscal 1Q15. The company’s cost of sales as a percentage of net sales fell by 2.5%. It operating income rose by 156.5% in fiscal 1Q16—compared to the same period the previous year.

Its net income and EPS (earnings per share) rose to $133.2 million and $1.51, respectively, in fiscal 1Q16—compared to $35.7 million and $0.40, respectively, in fiscal 1Q15.

Autoliv’s cash and cash equivalents fell by 12.9%. Its inventories rose by 7.8% in fiscal 1Q16—compared to fiscal 4Q15. Its current ratio and debt-to-equity ratio fell to 1.7x and 1.1x, respectively, in fiscal 1Q16—compared to 1.8x and 1.2x, respectively, in fiscal 4Q15.

The company declared a quarterly dividend of $0.58 per share of its common stock. The dividend will be paid on June 2, 2016, to shareholders of record at the close of business on May 18, 2016.

Projections

The company made the following projections for fiscal 2016 and fiscal 2Q16:

Fiscal 2Q16:

• It expects net sales growth of ~10%.

• It expects sales growth from merger and acquisition activities (ANBS and MACOM) of ~6%.

• It expects an adjusted operating margin of 8.5%. This excludes costs for capacity alignments and antitrust-related matters. This projection includes integration and purchase accounting-related costs for the joint venture with Nissin Kogyo of ~$10 million.