It has been about a month since the last earnings report for Adient (ADNT). Shares have added about 5.1% in that time frame, outperforming 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 drivers.

Adient Q1 Earnings Miss Estimates, Guidance Revised

Adient delivered adjusted earnings per share (EPS) of 31 cents for the first quarter of fiscal 2024. Earnings fell from 34 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 47 cents. In the reported quarter, the company generated net sales of $3.66 billion, which decreased 1% year over year and missed the Zacks Consensus Estimate of $3.72 billion.

Segmental Performance

Adient currently operates through three reportable segments — the 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 $1.65 billion, which declined 4% from the year-ago period but beat the Zacks Consensus Estimate of $1.64 billion. The segment recorded an adjusted EBITDA of $80 million, up from $69 million recorded in the prior-year period and topped the Zacks Consensus Estimate of $57 million, driven by sales outperformance.

In the fiscal first quarter, the EMEA segment registered revenues of $1.27 billion, which increased 7.6% year over year and exceeded the Zacks Consensus Estimate of $1.25 billion. The segment recorded EBITDA of $45 million in the quarter under review, which was higher than $28 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $40.99 million on the back of improved business performance, forex benefits and increased net commodities.

In the quarter, revenues in the Asia segment came in at $770 million, down 6.2% year over year and missed the Zacks Consensus Estimate of $844. The segment’s adjusted EBITDA fell 17.4% year over year to $114 million due to the end of production of a few programs and the launch of others, and the timing of recoveries.

Financial Position

Adient had cash and cash equivalents of $990 million as of Dec 31, 2023 compared with $1.11 billion as of Sep 30, 2023.

Long-term debt amounted to $2,403 million in the reported quarter, up from $2,401 million as of Sep 30, 2023.

Capital expenditures totaled $55 million in the fiscal first quarter of 2024 compared with $61 million in the prior-year quarter.

During the quarter under review, Adient repurchased nearly three million shares for $100 million.