Shares of Delphi Technologies (DLPH), a technology manufacturer providing electric-vehicle and internal combustion engine propulsion systems, jumped nearly 19% during Thursday morning trading after the company reported fourth-quarter financial results.
Delphi reported fourth-quarter 2018 revenue of $1.2 billion, a 9% decline compared to the prior year; fourth-quarter revenue adjusted for currency exchange and certain revenue retained by its former parent company declined by 5%. Delphi's revenue result was driven by a 6% decline in Powertrain Systems business only partially offset by a 3% growth in Aftermarket. Adjusted earnings per share checked in at $1.06 during the fourth quarter, which topped analysts' estimates calling for $0.89 per share.
"During my first two months as CEO, I have discovered that while 2019 is expected to be another transitional year with slower industry growth, we have an even greater potential to make this good company a great one. However, we clearly need to execute better and with more urgency and discipline to ensure we continue to support our customers and deliver value to our shareholders." said Richard F. Dauch, CEO of Delphi, in a press release.
2018 was a transitional year for Delphi after splitting into two companies, the other being Aptiv. Delphi lost an intriguing growth story as Aptiv retained much of the prior company's technology and solutions focused on the potentially lucrative driverless-vehicle market.
Despite losing part of its growth story, Delphi did manage to record $10 billion of new business awards during 2018, giving investors some confidence growth is possible. Delphi also delivered guidance a little soft of estimates: Management expects full-year 2019 revenue of $4.65 billion to $4.75 billion, compared to consensus estimates of $4.81 billion. Management also expects full-year earnings per share of $3.00 to $3.25, just below consensus estimates of $3.28 per share.