Adient (NYSE:ADNT) Issues Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Adient (NYSE:ADNT) issued its quarterly earnings data on Wednesday. The company reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.08), FiscalAI reports. The business had revenue of $3.93 billion during the quarter, compared to analysts’ expectations of $3.71 billion. Adient had a return on equity of 7.28% and a net margin of 0.39%.The company’s revenue was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.45 earnings per share.

Here are the key takeaways from Adient’s conference call:

• Q3 revenue rose 5% year over year to approximately $3.9 billion, supported by favorable volumes, pricing, foreign exchange, and growth in the Americas and China.
• Adjusted EBITDA was essentially flat at $225 million, with management citing approximately $32 million in temporary costs from Middle East-related freight, commodity inflation, and customer- or supplier-driven inefficiencies.
• Adient raised fiscal 2026 revenue guidance to approximately $15 billion while maintaining adjusted EBITDA guidance of $885 million and free cash flow guidance of $130 million.
• China sales increased about 33% and the Americas delivered margin expansion, while EMEA remained pressured by weak production and customer mix; Adient expects additional China margin compression in fiscal 2027 but anticipates EMEA benefits as underperforming metals programs roll off.
• Fiscal 2027 restructuring costs remain difficult to forecast because of pending customer production decisions, with management warning that an individual facility closure could cost $30 million or more; increased automation spending is also expected to raise capital expenditures.

Adient Trading Down 4.4%

NYSE:ADNT traded down $0.94 on Wednesday, reaching $20.23. 1,191,270 shares of the company’s stock were exchanged, compared to its average volume of 1,027,609. The firm has a market capitalization of $1.59 billion, a price-to-earnings ratio of 28.42, a price-to-earnings-growth ratio of 0.41 and a beta of 1.52. Adient has a 52-week low of $17.68 and a 52-week high of $27.32. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18. The business has a fifty day moving average of $20.81 and a 200-day moving average of $21.61.

Insider Activity at Adient

In other news, EVP Heather M. Tiltmann sold 22,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $22.71, for a total value of $499,620.00. Following the completion of the transaction, the executive vice president owned 110,886 shares of the company’s stock, valued at approximately $2,518,221.06. This trade represents a 16.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.94% of the company’s stock.

Hedge Funds Weigh In On Adient

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Quarry LP increased its position in shares of Adient by 163.9% during the third quarter. Quarry LP now owns 2,304 shares of the company’s stock worth $55,000 after acquiring an additional 1,431 shares during the period. Raymond James Financial Inc. purchased a new position in Adient in the second quarter valued at $63,000. Los Angeles Capital Management LLC purchased a new position in Adient in the fourth quarter valued at $64,000. Kestra Advisory Services LLC acquired a new position in Adient during the 4th quarter worth $96,000. Finally, iSAM Funds UK Ltd purchased a new stake in Adient during the 2nd quarter worth about $213,000. Hedge funds and other institutional investors own 92.44% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Citigroup raised Adient from a “neutral” rating to a “buy” rating and upped their price target for the company from $30.00 to $33.00 in a research note on Wednesday, April 15th. UBS Group boosted their price objective on shares of Adient from $33.00 to $34.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Adient from $31.00 to $29.00 and set a “buy” rating for the company in a research note on Monday, July 6th. Wells Fargo & Company lifted their price target on shares of Adient from $28.00 to $32.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Finally, Weiss Ratings raised shares of Adient from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Wednesday, May 13th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Adient has an average rating of “Hold” and a consensus target price of $27.90.

About Adient

Adient plc (NYSE: ADNT) is a leading global supplier of automotive seating and interior components. Established in 2016 through a spin-off from Johnson Controls, the company designs, engineers and manufactures complete seat assemblies, seat structures, mechanisms, foams, textiles, trim and electronics. Adient’s product portfolio spans a wide range of seating solutions, from entry-level designs to luxury and high-performance seats, and extends to interior modules such as door panels and center consoles.

Serving major original equipment manufacturers (OEMs) around the world, Adient works closely with automakers to develop lightweight, comfortable and safety-oriented seating systems.