What drove APTV's Q3 earnings miss?

Aptiv PLC (APTV) experienced a Q3 earnings miss due to a combination of factors:

1. **Revenue Decline**: The company's total revenue fell by 5% year-over-year to $4.9 billion, which was attributed to incremental customer schedule reductions and broader automotive production challenges. This decline was primarily driven by a 3.06% drop in revenue compared to the corresponding quarter of the prior year.
2. **Production Challenges and Inventory Management**: The transition to an EV-first future has presented challenges for many automakers, including Aptiv. The dramatic rise in inventories over the past several months is causing some automakers to slow production rates in order to prevent an already bloated inventory situation from becoming worse. This has impacted Aptiv's revenue and profitability.
3. **Cost Savings Measures**: Despite the revenue decline, Aptiv has implemented additional cost-saving measures to boost profitability. These measures include diversifying its customer base, consolidating its manufacturing footprint, and reducing direct and indirect labor across regions.

In summary, Aptiv's Q3 earnings miss was primarily driven by a decline in revenue due to production challenges and inventory management issues, despite the company's efforts to implement cost-saving measures.

|code|Ticker|Name|Date|Estimate EPS YoY|Estimate EPS|market_code|
|---|---|---|---|---|---|---|
|APTV|APTV.N|Aptiv|20240331|14.606741573033707|1.02|169|
|APTV|APTV.N|Aptiv|20240630|37.864077669902905|1.42|169|
|APTV|APTV.N|Aptiv|20240930|35.77235772357723|1.67|169|
|APTV|APTV.N|Aptiv|20241231|22.556390977443595|1.63|169|

|code|Ticker|Name|Date|Estimate Revenue|Estimate Revenue YoY|market_code|
|---|---|---|---|---|---|---|
|APTV|APTV.N|Aptiv|20240331|4.99E9|9.670329670329672|169|
|APTV|APTV.N|Aptiv|20240630|5.3E9|12.288135593220339|169|
|APTV|APTV.N|Aptiv|20240930|5.1E9|0.39370078740157477|169|
|APTV|APTV.N|Aptiv|20241231|4.87E9|-3.7549407114624502|169|

|code|Ticker|Name|Date|Operating Income YoY|Operating Income|market_code|
|---|---|---|---|---|---|---|
|APTV|APTV.N|Aptiv|2024 Q1|25.97864768683274|3.54E8|169|
|APTV|APTV.N|Aptiv|2024 Q2|11.538461538461538|3.77E8|169|
|APTV|APTV.N|Aptiv|2024 Q3|8.355795148247978|4.02E8|169|
|APTV|APTV.N|Aptiv|2024 Q4|30.985915492957744|3.72E8|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|APTV|APTV.N|Aptiv|2024 Q1|36.58536585365854|2.24E8|169|
|APTV|APTV.N|Aptiv|2024 Q2|283.33333333333337|9.43E8|169|
|APTV|APTV.N|Aptiv|2024 Q3|-77.5198533903482|3.68E8|169|
|APTV|APTV.N|Aptiv|2024 Q4|-70.07616974972797|2.75E8|169|

|code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|APTV|APTV.N|Aptiv|2024 Q1|34.27245218719703|4.5705|169|
|APTV|APTV.N|Aptiv|2024 Q2|186.52445877926013|11.7263|169|
|APTV|APTV.N|Aptiv|2024 Q3|-23.361128359797746|10.3674|169|
|APTV|APTV.N|Aptiv|2024 Q4|-37.9285168635033|9.1818|169|