A Peek Behind the Numbers

A Peek Behind the Numbers

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A Peek Behind the Numbers
A Peek Behind the Numbers
BTN Red Flag Note- Adient Plc (ADNT)

BTN Red Flag Note- Adient Plc (ADNT)

Investors should factor in potential developing earnings headwinds

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Behind the Numbers
Feb 04, 2025
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A Peek Behind the Numbers
A Peek Behind the Numbers
BTN Red Flag Note- Adient Plc (ADNT)
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Adient (ADNT) has seen its stock price steadily decline over the past year, dropping from $35 to under $17. Despite reporting Q1 2025 EPS that exceeded analysts’ estimates by a penny and slightly beating sales expectations, the stock has fallen nearly 10% since the announcement. While the stock may seem attractively valued at under 10x forward earnings, we have identified several unsustainable accounting-related tailwinds that could easily become headwinds. We believe investors should carefully assess these factors before attempting to buy the stock at what appears to be a bargain price.

This report is based on an initial review of SEC filings and does not represent a complete earnings quality assessment of the company. We may conduct additional analysis and release a more comprehensive report in the future if warranted.

In case you missed it, here’s a link to last Tuesday’s piece, Shorting Isn’t Dead…, which is currently available without a paywall for free subscribers.

Now, let’s get behind ADNT’s numbers…


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