Market Overview

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


Shares of Delphi Automotive PLC (NYSE: DLPH) 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 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 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.

Posted-In: auto stocks Delphi Delphi AutomotiveNews Guidance Dividends Buybacks


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