ALV – 2Q was below consensus and 2019 was reduced. Why should 2020 be better?
ALV’s 2Q and 2019 guide-down was (by now) expected. Investors should ask: Why would 2020 be better? We continue to see downside to 2020 estimates (we’re -23% vs consensus).
A positive data point from a supplier?
GNTX reported earnings on Friday. They beat and modestly raised FY guidance. Significant content growth, along with strong cost control, seemed to be the reason why GNTX was able to offset the very challenging global production environment. This makes us incrementally more constructive on the potential for APTV and BWA’s to hold up better than most.
NIO update – Volume uptick from ES6 should bring some stabilization
Dark clouds starting to lift a bit. In-line volumes in Q3 and lower-than-expected dilution from E-Town investment would be positive, but visibility still low.