Aptiv Q4 Earnings: Revenue Beat, EPS Beat, Shares Jump

Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener, and more connected, reported fourth quarter 2023 earnings that surpassed analysts' expectations. The company's shares jumped following the announcement, reflecting investors' confidence in its strong performance.

Aptiv reported U.S. GAAP revenue of $4.9 billion, an increase of 6% compared to the prior year period. Adjusted for currency exchange, commodity movements, and acquisitions, revenue increased by 2% in the fourth quarter. This growth was driven by a 10% increase in Asia, including a 12% increase in China, and a 6% increase in Europe, partially offset by declines in North America and South America.

The company's adjusted operating income margin improved to 12.2% from 11.3% in the prior year period, reflecting increased global vehicle production, pricing, and the continued easing of supply chain disruption costs. Adjusted operating income totaled $600 million, compared to $523 million in the prior year period.

Aptiv's net cash flow from operating activities in the fourth quarter was $624 million, compared to $933 million in the prior year period. The company returned $300 million to shareholders through share repurchases and paid off $301 million of a term loan two years early.

For the full year 2023, Aptiv reported U.S. GAAP revenue of $20.1 billion, an increase of 15% from the prior year. Adjusted for currency exchange, commodity movements, and acquisitions, revenue increased by 12% in 2023. The company's adjusted operating income margin improved to 10.6% from 9.8% in the prior year period.

Aptiv's strong performance in the fourth quarter and full year 2023 reflects its ability to capitalize on the growing demand for electrified and software-defined vehicles. The company's focus on advanced safety, user experience, and autonomous driving technologies positions it well to address the increasing challenges faced by its customers as they transition to more feature-rich, software-defined vehicles.