Shares of Aptiv, an automotive technology company, experienced a significant drop, reaching a three-year low, following the announcement of better-than-expected results for the third quarter. However, the company warned that the revenue for the full year would be affected by recent strikes from autoworkers.
In early trading, the stock fell over 17%, hitting a low of $71.01. This represents a year-to-date decrease of more than 20% and the lowest point since May 2020.
Aptiv maintained its revenue guidance for the year at $19.95 billion to $20.25 billion. However, the company acknowledged that this outlook includes a $180 million impact from the United Auto Workers’ strikes at major auto plants.
During the third quarter, Aptiv reported a profit of $1.63 billion or $5.76 per share, significantly higher than the $286 million or $1.05 per share recorded in the same quarter last year. Adjusted earnings were $1.30 per share after accounting for one-time items, surpassing analyst expectations of $1.23 per share.
Aptiv also exceeded analyst predictions for revenue, with a total of $5.11 billion, up 11% from the previous year.
While Aptiv faces challenges due to the autoworker labor strikes, the company remains optimistic about its overall performance and revenue for the year.
