Ford And Nio Turn To This Supplier To Make Their Premium EVs Safer. Autoliv Stock Soars.

From Ford (F) to Nio (NIO), carmakers across the globe are trying to make cars safer as well as electric and high-tech.

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Autoliv (ALV) underpins that shared goal. The Sweden-based safety products and systems supplier to many global automakers reported Friday that earnings per share more than doubled in the second quarter, after doubling in Q1. Autoliv stock soared.

Autoliv No. 1 Auto Safety Supplier

Autoliv, the world’s biggest air bag and seat belt maker, says it benefits from higher vehicle safety standards and stricter regulations.

Other factors driving its markets include “the premium vehicle trend and the increasing focus on safety in emerging markets,” the company said in its 2022 Annual Report.

In China, Autoliv customers include EV startups Nio, Li Auto (LI) and XPeng (XPEV). Its customers also include Ford and General Motors (GM) in the U.S., and Volkswagen (VWAGY) in Europe. Autoliv supplies the Nio ES6 SUV and Ford Lightning truck, for example, both premium, new electric vehicles.

The global shift to electric vehicles continues to gather pace. Autoliv also makes EV safety products, such as battery cutoff switches.

Autoliv Earnings

In Q2, Autoliv revenue jumped 27% to $2.635 billion, it said Friday. Earnings grew 115% per share to $1.93, crushing estimates for $1.41, FactSet shows. That marked accelerating growth from a 17% revenue gain and 100% earnings surge in the first quarter.

The company tied Q2 gains to new product launches, higher prices and cost cuts. “We achieved the price compensations from customers we planned for,” the earning release said.

Earnings Wave Is Here; Why These Are The 3 To Watch

Autoliv Stock, Ford, Nio

In stock market action Friday, Autoliv stock surged 10.2% in big volume to 102.77. Shares pegged a 52-week high of 103.99 intraday. The move scored a breakaway gap breakout above a buy point at 98. The breakaway gap rules put the buy point at 99.68.

Nio also rose Friday, while Ford stock fell a fraction.

Cost Inflation

On Friday, Autoliv reiterated full-year guidance after beating estimates.

In 2022, the auto safety products maker’s earnings fell 12% amid the chip shortage and Covid-19 lockdowns in China. Analysts expect a 48% earnings rebound for full-year 2023, FactSet shows.

Lingering challenges include cost inflation tied to raw materials, labor and logistics.

Year to date, ALV stock is up 34.2%.

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