Autoliv, Inc. (ALV) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Autoliv, Inc. (ALV) is scheduled to report earnings for the quarter ended June 2025 on July 18, with market consensus anticipating EPS of $2.05, a 9.6% year-over-year increase, on revenues of $2.61 billion, up 0.3%. While consensus EPS estimates saw a modest 0.67% upward revision recently, a negative Zacks Earnings ESP of -1.52% combined with a Zacks Rank of #4 indicate that Autoliv is not considered a strong candidate for an earnings beat, prompting investors to weigh other fundamental factors.

Analysis

Autoliv, Inc. (ALV) presents a mixed outlook ahead of its June 2025 quarterly earnings release on July 18. The consensus forecast anticipates a 9.6% year-over-year increase in earnings per share to $2.05, alongside nearly flat revenue growth of 0.3% to $2.61 billion. While the consensus EPS estimate has been revised upward by a modest 0.67% over the last 30 days, more recent indicators suggest a potential for disappointment. The company has a negative Zacks Earnings ESP (Expected Surprise Prediction) of -1.52%, indicating that the most recent analyst estimates are trending below the broader consensus. This bearish signal is amplified by the stock's Zacks Rank of #4 (Sell), a combination that historically makes it difficult to predict an earnings beat. Although Autoliv has a record of surpassing EPS estimates in two of the last four quarters, including a significant 25% beat last quarter, the current predictive models point towards a heightened risk of a miss.

Key Decisions for Investors

• Given the negative Earnings ESP of -1.52% and a Zacks Rank of #4, investors should exercise caution, as these indicators suggest a low probability of an earnings beat despite positive year-over-year growth expectations.
• Pay close attention to management's guidance on the earnings call, as the projected stagnant revenue growth of 0.3% raises questions about margin sustainability and future profitability which will likely be a key driver for the stock.
• Considering the stock's mixed surprise history against the current negative predictive metrics, traders could view this as a potential volatility event, suggesting that hedging existing long positions may be a prudent strategy ahead of the report.