Delphi Automotive Poised For Growth, And Wall Street Knows It
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Oct. 11, 9:33 AM
- The German Bundesrat has fired a warning shot across the automobile industry that is yet another indication that seismic changes could be coming down the road.
- In a vote intended to pressure the EU, the Bundesrat approved a measure to ban gas and diesel vehicles by 2030. The Bundesrat doesn't set policy across Europe, but is considered influential.
- Naturally, the fact that the push is coming from the home of Mercedes, BMW, and Volkswagen also adds a degree of intrigue to the news and the underlying electrification push out of the trio.
- Wall Street analysts with their 1-year price target mindset haven't weighed in on the development, but there's plenty of discussion on Seeking Alpha about the implications.
- Previously: Germany says nein to internal combustion engines (Oct. 10)
- Related auto parts stocks: ACW, ALSN, ALV, AXL, BWA, CAAS, CPS, DAN, DLPH, DORM, FDML, FENX, GNTX, JCI, LDL, LEA, LKQ, MBLY, MLR, MNRO, MOD, MPAA, MPG, MTOR, PLOW, SMP, SRI, STRT, SUP, STRT, TEN, THRM, TEN, TOWR, UFAB, VC, VOXX, WBC, ZX.
Tue, Sep. 20, 2:30 AM
- In its most comprehensive statement yet on autonomous vehicles, the Obama administration said it would consider seeking the power to approve technology for self-driving cars and said U.S. states should not issue separate rules.
- The U.S. Transportation Department also included a 15-point set of "safety assessment" guidelines, covering issues like cybersecurity, black box recordings and how a vehicle would deal with potential ethical conundrums.
- Related tickers: F, GM, TM, GOOG, GOOGL, TSLA, MBLY, DLPH, TM, HTZ, CAR, HMC, UBER, LYFT
Fri, Sep. 16, 11:59 AM
- Delphi Automotive (DLPH +0.5%) announces it priced a $300M senior notes issue due in 2046 at a price of 99.454% of their principal amount.
- The company plans to use the proceeds, along with the proceeds from its other previously announced note offerings, to repay an existing $800M 5.00% senior note issue with a 2023 maturity date.
- Source: Press Release
Wed, Aug. 31, 2:21 PM
- Delphi Automotive (NYSE:DLPH) announces it priced €500M ($657M) aggregate principal amount of its 1.600% senior note issue due in 2028.
- The company says the notes will be issued at a price of 99.881% of their principal amount.
- The proceeds are being used to repay a portion of Delphi's existing $800M 5.00% Senior Notes due 2023.
- Source: Press Release
Wed, Aug. 31, 10:26 AM
- U.S. auto sales are expected to show a decline of 2% to 5% for August amid a dialing back of discounting activity, according to the range of forecasts from Kelley Blue Book, Edmunds, J.D. Power, and LMC Automotive. General Motors is poised to report a loss of market share as its plan to cut out fleet sales impacts volume.
- Bloomberg estimates the seasonally adjusted selling rate for the month will be 17.2M, down from 17.9M last month.
- The sales dip isn't necessarily a bottom line drag for the sector due to reduced discounting and the increasing mix of higher-profit SUVs and trucks. But higher profit hasn't lifted automaker stocks this year, with the group having trouble gaining traction and trading with low forward PE multiples (GM 5.5, Ford 6.8, Honda 10.5, Toyota 10.9).
- Auto parts stocks (LEA, TEN, BWA, DAN, MPAA, CPS, DLPH, AXL, TOWR, ACW, FENX, MTOR, THRM, SMP, ALV, MOD, SRI) will be on watch tomorrow when the reports roll in as the sector frequently sees some extra volatility on days U.S. auto sales are disclosed.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE.
Thu, Aug. 25, 8:28 AM
- Singapore became the first country in the world to offer a self-driving taxi service with the targeted launch of nuTonomy. A full roll-out of an autonomous taxi service across the nation is expected as early as 2018.
- While self-driving cars from Google (GOOG, GOOGL), Baidu (NASDAQ:BIDU), and others have been out testing on the roads for the last few years, nuTonomy's service is the first commercial application of the nascent technology open to public use. Uber (Private:UBER) plans to test self-driving cars in Pittsburgh next month.
- NuTonomy will use human drivers as backups in the initial roll-out of the Renault (OTC:RNSDF, OTCPK:RNLSY) Zoe and Mitusubishi (OTCPK:MMTOF) i-MiEV taxis before moving to full autonomy.
- Other companies with autonomous vehicles on their radar include Mobileye (NYSE:MBLY), Delphi Automotive (NYSE:DLPH), Volvo (OTCPK:GELYF), Ford (NYSE:F), Tesla Motors (NASDAQ:TSLA), Toyota (NYSE:TM), Hertz Global (NYSE:HTZ), Avis Budget (NASDAQ:CAR), Nissan (OTCPK:NSANY), BMW (BAMXY), Intel (NASDAQ:INTC), Honda (NYSE:HMC), FedEx (NYSE:FDX), Lyft (Private:LYFT), and General Motors (NYSE:GM) to name just a partial list -- although analyzing which stocks may benefit from a future of a mix of self-driving cars on the road is a tricky business.
- Previously: Scientists warn on self-driving car rush (July 8)
- Previously: Self-driving car push adds a little buzz for restaurants (Aug. 6)
Tue, Aug. 23, 7:01 AM
- Mobileye (NYSE:MBLY) and Delphi Automotive PLC (NYSE:DLPH) confirm they will form partnership to jointly develop a complete SAE Level 4/5 automated driving solution.
- "Our partnership with Delphi will accelerate the time to market and enable customers to adopt Level 4/5 automation without the need for huge capital investments, thereby creating a formidable advantage for them." says Mobileye CTO Amnon Shashua
- A conference call is scheduled for 9:00 a.m. ET to discuss details of the partnership.
- MBLY +4.253% premarket to $48.54
- Source: Press Release
- Previously: Delphi Automotive and Mobileye to partner up in self-driving car push (Aug. 23)
Tue, Aug. 23, 4:58 AM
- A key autonomous driving partnership between Delphi Automotive (NYSE:DLPH) and Mobileye (NYSE:MBLY) is expected to be announced later today.
- The two auto suppliers want to pool investment and execution risk amid the rapidly developing self-driving car push in the industry.
- Shares of both companies are down roughly 10% over the last 52 weeks.
Tue, Aug. 16, 9:35 AM
- Ford (NYSE:F) says it will make an announcement at 2:00 p.m. EDT to discuss the company's expanding presence in Silicon Valley and autonomous vehicle development.
- The automaker will also host a conference call with analysts at 4:00 p.m. to discuss its smart mobility ambitions. The roster of Ford execs on the call include global development and technology heavyweights.
- Earlier today on CNBC, CEO Mark Fields joined the group of leaders predicting a seismic change in the automobile industry.
- "Our view is autonomous vehicles could have just as much [of an] impact on society as Ford's moving assembly line did 100 years ago," Fields noted. In an important revelation, Fields says more customers are telling the company that they are interested in the autonomous driving option -- an anecdote that runs counter to the view of some that drivers don't want to give up the wheel (partially or fully).
- Field hinted that the scheduled autonomous announcement for today will be significant. It's a development that could have some bearing on the self-driving plans of General Motors (NYSE:GM), Audi (OTCPK:VLKAY), Tesla Motors (NASDAQ:TSLA), Nissan (OTCPK:NSANY), and Toyota (NYSE:TM). Lyft (Private:LYFT) and Uber (Private:UBER) are also feeling their way around the autonomous driving landscape. Plenty of auto suppliers such as Mobileye (NYSE:MBLY), Autoliv (NYSE:ALV), BorgWarner (NYSE:BWA), Tenneco (NYSE:TEN), Dana (NYSE:DAN), STMicroelectronics (NYSE:STM), and Delphi Automotive (NYSE:DLPH) will also be listening intently to details on Ford's plans.
- Previously: Ford pushes the accelerator on autonomous vehicles (Aug. 16)
Tue, Aug. 9, 10:46 AM
- Motorcar Parts of America (MPAA +16.6%) rallies after a solid Q2 earnings beat.
- Cooper-Standard Holdings (CPS +5.3%) is higher after catching a bullish initiation from Seaport Global Securities at a Buy rating.
- The boutique firm also sets Delphi Automotive (DLPH +0.6%) at Buy.
- Other sector movers on the day include Accuride (ACW +3.6%), American Axle & Manufacturing (AXL +2.1%), Autoliv (ALV +1.4%), and Tower International (TOWR +1.4%).
Wed, Aug. 3, 10:54 AM
- Delphi Automotive (DLPH -1.4%) reports revenue rose 7% in Q2 after adjusted for currency exchange, commodity movements, acquisitions and divestitures.
- Electrical/Electronic Architecture sales increased 15% to $2.35B.
- Powertrain Systems sales fell 2% to $1.12B.
- Electronics and Safety sales +9% to $777M.
- Adjusted operating margin rate grew 10 bps to 13.7%.
- Q3 Guidance: Revenue: $3.925B to $4B; Adjusted operating income: $505M to $525M; Adjusted operating income margin: 12.9% to 13.1%; Adjusted EPS: $1.38 to $1.44; Adjusted tax rate: 17%.
- FY2016 Guidance: Revenue: $16.25B to $16.45B; Adjusted operating income: $2.15B to $2.2BM; Adjusted operating income margin: 13.2% to 13.4%; Adjusted EPS: $5.95 to $6.05; Cash flow from operations: $1.9B; Capex: $750M to $800M; Adjusted tax rate: 17%.
Wed, Aug. 3, 6:47 AM
Tue, Aug. 2, 5:30 PM
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Tue, Aug. 2, 10:33 AM
- Auto parts stocks after lower after Detroit automakers disappoint with July U.S. sales growth.
- The sector has been on watch since last week when Ford warned on a plateauing of the U.S. automobile market.
- Leading decliners include Lear (LEA -4.7%), Tenneco (TEN -3.8%), BorgWarner (BWA -3.8%), Dana Holding (DAN -3.2%), Motorcar Parts of America (MPAA -3.3%), Cooper-Standard Holdings (CPS -2.9%), and Delphi Automotive (DLPH -2.4%).
Thu, Jul. 28, 5:40 PM
Fri, Jun. 24, 12:00 PM