Delphi Automotive PLC (DLPH) Shows Efficiency, Beats EPS On Lighter Revenue


Delphi Automotive PLC (NASDAQ:DLPH) announced earning this morning and easily beat estimates for profit. The company showed a 4 cent Q4 rise in EPS to $1.32. The company was slightly lower than expected on revenue at $4.2 billion. Analysts’ estimates called for revenue to come in at $4.25 billion. The automotive component maker slightly lowered forward guidance for the first quarter of 2015 along with full year projections.

Although this can be labeled a miss by overzealous traders, that couldn’t be more wrong. The company increased cash flow, reiterated a dividend, and doubled down on its stock repurchase program. All of this is great news for shareholders. The company grew organically from through efficiency rather being reliant on revenue gains.

Growth Efficient

Delphi Automotive PLC (NASDAQ:DLPH) saw softness in its electrical architecture segment with revenues falling 2%. Power train systems sales gained 3% and thermal systems gaining 2% in revenue generation. The enhanced bottom line profit shows operating efficiency though bolstering the EPS growth. This also resulted of softening cash on hand as the coffers went from a previous year $1.4 billion to the current $900 million level. Critical cash flow numbers were very positive though and grew to a tidy $2.14 billion. The company is growing very efficiently and maximizing every dollar it takes in. Lowering operating and production costs are a big source for this efficiency.

Shareholder Value

Delphi Automotive PLC (NASDAQ:DLPH) continued to create shareholder value through developments and also by instigating a $1 billion stock repurchase program. A dividend was also assigned to the issue enhancing value for shareholders also. The stock buyback program follows another program that has almost been completed.

Delphi Automotive PLC (NASDAQ:DLPH) still has about $166 million left to complete that repurchase. The company recently revealed expectations of over 50% growth in the sales of advanced safety systems for independent driving. The company already has capitalized on over $160 million in sales for these systems and looks to acquire even more of the market share going forward.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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