Adient Finishes Fiscal 2022 on a Strong Note and Signals Confidence With Share Repurchase Program

Adient reported fiscal 2022 fourth-quarter results that sent the stock up 14.2% on Nov. 4. Adjusted diluted EPS of $0.53 improved from a $0.24 loss in the prior year's quarter and beat the $0.51 Refinitiv consensus. The stock also likely rose because of the company announcing a $600 million share repurchase plan with no expiration. We are leaving our fair value estimate in place but will reassess all valuation inputs later this month when the 10-K is filed. Outgoing CFO Jeff Stafeil said the fiscal first quarter will be more like the company's normal prepandemic free cash flow cadence, which was generally negative, so buybacks will likely not start until at least fiscal second quarter. Stafeil is resigning on Nov. 30 to become Tenneco's CFO, should that firm's sale to private equity close later this month. Adient's Americas leader Jerome Dorlack will become CFO, and we expect a smooth transition.