Delphi Offers Long-Term Outlook; Reports New $1.5 Billion Buyback Plan

Loading...
Loading...
Shares of
Delphi Automotive PLCDLPH
gained more than 5 percent on Wednesday after the company
provided investors with a long-term outlook
and announced a new share buyback program. Speaking at a conference in London on Wednesday, Delphi's management said that it expects its fiscal 2016 organic sales to rise 8 to 10 percent. The company also expects to see its earnings per share grow in the mid-teens range and expects a 16 percent growth in dividends. Looking beyond fiscal 2016, Delphi expects to realize an 8 to percent compounded annual growth rate in sales in fiscal 2018 through 2020. During the same time period, management expects to realize a double-digit growth in its earnings per share. The company also provided a capital deployment guideline for 2016 through 2018 with the following breakdown: 45-55 percent M&A and share repurchases, 35-40 percent capital expenditures, 10-15 percent dividends. In the interim, Delphi announced a new share repurchase program totaling $1.5 billion which "reflects continued confidence" in the business and the company's "commitment to create and enhance value." Delphi also highlighted a previously announced increase to its annual dividend payout to $1.16 per share which represents 15 percent of 2016's operating cash flow.
Loading...
Loading...
Posted In: NewsGuidanceDividendsBuybacksauto stocksDelphiDelphi Automotive
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...