Al Root

Aptiv's first-quarter results were solid, but if investors were looking for tariff certainty from the auto supplier, they didn't get it.

Thursday morning, Aptiv reported first-quarter earnings per share of $1.69 from sales of $4.8 billion. Wall Street was looking for EPS of $1.53 from sales of $4.8 billion. A year ago, Aptiv reported EPS of $1.16 from sales of $4.9 billion.

"The company delivered record first quarter adjusted earnings per share, driven by strong execution and proactive capital allocation initiatives, " said CEO Kevin Clark in a news release. "As we navigate through near-term geopolitical uncertainties, our robust business model allows us to remain agile and responsive in a dynamic microenvironment."

Shares were up 3.1% at $58.85 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 1.3% and 0.8%, respectively.

Coming into Thursday trading, Aptiv stock was up about 3% since the Nov. 5 presidential election. Plans to split the company into two and share buybacks have helped improve investor sentiment.

The results look good, but there was no tariff update. Guidance was left unchanged. In February, management said they expected 2025 earnings per share to land between $7 to $7.60 from sales of about $20 billion. Operating profit margins were expected to be between 11.9% and 12.3%.

"The Company's full year 2025 financial guidance does not reflect the potential impacts of recently imposed or threatened tariffs by the U.S. government, or the potential for additional tariffs, trade barriers or retaliatory actions by the U.S. or other countries," reads the release. "The Company will update its full-year 2025 guidance when visibility of such impacts improves."

For the second quarter, the midpoint of Aptiv's guidance calls for EPS of $1.80 from sales of $5 billion. Wall Street projects $1.62 and $5 billion, respectively.

The business is performing well. Tariffs still loom over the industry. President Donald Trump adjusted automotive tariffs earlier in the week. Essentially, there is no tariff stacking, so imported cars face only a 25% import levy. There was also some relief for imported parts, which helped Aptiv and other suppliers.

Investors still don't know exactly by how much, though.

Write to Al Root at allen.root@dowjones.com

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May 01, 2025 07:43 ET (11:43 GMT)

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