A month has gone by since the last earnings report for Adient (ADNT). Shares have added about 3.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Adient due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Adient Q3 Earnings Miss Estimates, Guidance Trimmed

Adient reported adjusted earnings per share (EPS) of 32 cents for the third quarter of fiscal 2024. Earnings fell from 98 cents recorded in the year-ago period and missed the Zacks Consensus Estimate of 67 cents.

The company generated net sales of $3.72 billion, which decreased 8% year over year and missed the Zacks Consensus Estimate of $3.81 billion.

Segmental Performance

Adient currently operates through three reportable segments — Americas, including North America and South America; Europe, which includes the Middle East and Africa (EMEA); and Asia Pacific/China (Asia).

In the reported quarter, the Americas segment recorded revenues of $1.74 billion, which declined 8.6% from the year-ago period and missed the Zacks Consensus Estimate of $1.76 billion. The segment recorded an adjusted EBITDA of $99 million, which increased from $95 million recorded in the prior-year quarter and beat the Zacks Consensus Estimate of $67 million, driven by efficiencies in material margin, freight and engineering.

The EMEA segment registered revenues of $1.29 billion, which declined 10.4% year over year and missed the Zacks Consensus Estimate of $1.35 billion. The segment recorded an adjusted EBITDA of $25 million, which significantly dropped from the $103 million generated in the year-ago period. It also missed the Zacks Consensus Estimate of $91 million due to unfavorable business performance from lower levels of customer releases.

In the fiscal third quarter, revenues in the Asia segment came in at $712 million, which declined 4% year over year and missed the Zacks Consensus Estimate of $729 million. The segment’s adjusted EBITDA rose 1% year over year to $101 million and beat the Zacks Consensus Estimate of $95 million due to efficiencies in the material margin, launch and labor.

Financial Position

Adient had cash and cash equivalents of $890 million as of Jun 30, 2024, compared with $1.11 billion as of Sep 30, 2023.

As of Jun 30, 2024, long-term debt amounted to $2.4 billion.

Capital expenditures totaled $70 million compared with $60 million in the prior-year quarter.

During the quarter under review, ADNT repurchased nearly 2.6 million shares for $75 million.