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Delphi Automotive Declares Dividend of $0.29 Per Share

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Price movement

Delphi Automotive (DLPH) has a market cap of $18.6 billion. It fell by 2.3% to close at $67.67 per share on July 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.6%, 11.5%, and -20.4%, respectively, on the same day.

DLPH is trading 2.8% above its 20-day moving average, 1.8% above its 50-day moving average, and 7.0% below its 200-day moving average.

Related ETF and peers

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.18% of its holdings in Delphi Automotive. The ETF tracks an index that selects and weights value stocks from the S&P 500 Value Index using fundamental factors, including sales, book value, and cash flows. The YTD price movement of FTA was 9.2% on July 28, 2016.

The market caps of Delphi Automotive’s competitors are as follows:

  • Autoliv (ALV): $10.1 billion
  • Lear (LEA): $8.2 billion
  • Visteon (VC): $2.4 billion

Delphi Automotive declared dividend

Delphi Automotive has declared a quarterly cash dividend of $0.29 per share on its common stock. The dividend will be paid on August 24, 2016, to shareholders of record at the close of business on August 10, 2016.

Delphi Automotive’s performance in 1Q16

Delphi Automotive reported 1Q16 net sales of $4.1 billion, a rise of 6.7% compared to net sales of $3.8 billion in 1Q15. Sales from its Electrical/Electronic Architecture, Powertrain Systems, and Electronics and Safety segments rose by 9.6%, 1.2%, and 5.6%, respectively, in 1Q16 compared to fiscal 1Q15. The company reported restructuring expenses of $35.0 million in 1Q16 compared to $16.0 million in 1Q15.

Its net income and EPS (earnings per share) rose to $425.0 million and $1.53, respectively, in 1Q16. This compares to $209.0 million and $0.72, respectively, in 1Q15.

Delphi’s cash and cash equivalents fell by 13.5%. Its inventories rose by 9.0% in 1Q16 compared to 4Q15. Its debt-to-equity ratio rose to 3.6x in fiscal 1Q16 compared to 3.4x in fiscal 4Q15.

Projections

Delphi Automotive (DLPH) has made the following projections for 2Q16:

  • revenue: $4.1 billion–$4.2 billion
  • adjusted operating income: $555 million–$585 million
  • adjusted EPS: $1.50–$1.60
  • adjusted effective tax rate: 17%

The company has made the following projections for 2016:

  • revenue: $16.6 billion–$17.0 billion
  • adjusted operating income: $2.2 billion–$2.3 billion
  • adjusted EPS: $5.80–$6.10
  • cash flow from operations: $2.0 billion
  • capital expenditures: $800 million
  • adjusted effective tax rate: 17%

In the next part of this series, we’ll take a look at BorgWarner.

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