: Autoliv stock sinks toward 4-month low after earnings miss, citing chip shortage and rising costs #FinanceUSA #StockMarketNEWS Shares of Autoliv Inc. sank 6.8% toward a four-month low in premarket
@stockMarketNEWS 20 Days ago
Autoliv stock sinks toward 4-month low after earnings miss, citing chip shortage and rising costs #FinanceUSA #StockMarketNEWS
Shares of Autoliv Inc. sank 6.8% toward a four-month low in premarket trading Friday, after the Sweden-based maker of automotive safety systems reported second-quarter profit and sales that missed expectations and cut its full-year outlook, citing the continued impact of the COVID-19 pandemic, the negative effect of the semiconductor shortage and continued rise in raw material prices. The company swung to net income of 4 million, or .19 a share, from a loss of 5 million, or .00 a share, in the year ago period. Excluding nonrecurring items, adjusted earnings per share came to .20, below the FactSet consensus of .38. Sales jumped 93.0% to .02 billion, but was just shy of the FactSet consensus of .04 billion. The company lowered its 2021 net sales growth guidance to 20% to 22% from "around 23%." The company said prices of some key commodities has increased by more than 20% in the past three months, and expects full-year raw material costs to be a 130 basis point headwind to operating margin. "Supply shortage of semiconductors resulted in a Q2 [light vehicle production] that was 8% lower than what was expected at the beginning of the quarter, and 8% lower than th efirst quarter (according to IHS Markit, June 2021)," said Chief Executive Mikael Bratt. The stock has gained 3.1% year to date through Thursday, while the S&P 500 has advanced 16.1%.