PHIN Earnings Prediction
The chart below shows how PHIN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PHIN sees a +2.94% change in stock price 10 days leading up to the earnings, and a +7.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.45%. This data can give you a slight idea of what to expect for the next quarter's release.
PHIN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
833.00M
-5.56%
-0.72%
Gross Margin
22.69%
7.59%
1.79%
Operating Margin
6.12%
-39.35%
-35.85%
Net Margin
0.60%
-74.79%
-83.74%
EPS
0.12
-73.33%
-82.86%
No Data Available
PHIN Earnings Analysis
Phinia Inc Corporation (PHIN.N) Earnings Conference Call
Positive
Aftermarket Segment Resilience: Strong aftermarket segment sales contributed positively despite lower fuel system sales, indicating resilience in certain areas of the business.
Strong Operational Performance: Adjusted EBITDA of $110 million with a margin of 13.2% demonstrates solid operational performance, even amidst a decrease in sales.
Operating Margin Improvement: Total segment adjusted operating margins improved by 20 basis points year-over-year, reflecting effective cost management and operational efficiency.
Strong Cash Generation: Healthy adjusted free cash flow of $72 million in Q4 and $253 million for the full year showcases strong cash generation capabilities.
Shareholder Returns Strategy: The company returned $35 million to shareholders through share buybacks and dividends in Q4, reflecting confidence in financial health and commitment to shareholder value.
New Business Wins: Significant new business wins in diverse markets, including aerospace and defense, highlight the company's growth potential and market competitiveness.
Product Line Expansion: The introduction of over 3,600 SKUs for aftermarket customers indicates a proactive approach to expanding product offerings and meeting customer needs.
Strong Financial Position: The company ended the year with a strong balance sheet, including cash and cash equivalents of $484 million, providing financial stability and flexibility for future growth.
Share Repurchase and Dividends: The Board approved an increase in the share repurchase program by $200 million and declared an 8% increase in quarterly dividends, signaling strong cash flow generation and commitment to returning value to shareholders.
Negative
Earnings Miss Reported: PHINIA Inc. missed earnings expectations with reported EPS of $0.71, below the expected $0.80.
Decline in Net Sales: Net sales in Q4 were $833 million, down 5.6% from the same period last year, indicating a soft top line performance.
EBITDA Margin Decline: Adjusted EBITDA decreased by $17 million year-over-year, reflecting a margin drop of 160 basis points to 13.2%.
Fuel Systems Sales Decline: The Fuel Systems segment experienced a significant sales decline of 11.7%, attributed to lower commercial vehicle revenue in Europe and China.
Tax Rate Exceeds Guidance: The adjusted effective tax rate for Q4 was 41.5%, exceeding the guidance range of 33% to 37%, indicating tax management issues.
Aftermarket Margin Decline: The Aftermarket segment margin decreased by 140 basis points to 14.9%, primarily due to increased freight and other charges.
Sales Impact Analysis: Sales performance for the full year was impacted by a headwind of $104 million from lower commercial vehicle sales in Europe and China.
Foreign Exchange Headwinds: The company anticipates headwinds related to exchange rates in 2025, with a projected negative impact of approximately $80 million from foreign exchange fluctuations.
PHIN FAQs
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PHIN Earning Call Sentiment
PHINIA Inc. (NYSE:PHIN) Q4 2024 Earnings Call Transcript
PHIN.N
-4.67%Positive
The earnings call presented a mixed picture: while there was strength in aftermarket growth and cash flow, significant challenges included revenue decline, high tax rates, and weak guidance in light vehicles. The Q&A revealed management's focus on long-term opportunities in aerospace and defense, yet there was a lack of clarity on tax issues. Given the company's $1.77 billion market cap, the stock is likely to remain stable with a neutral sentiment, as positive aspects balance out the negatives.
