Delphi Shares Surge 6% Premarket As Earnings Beat; Company Plans Spinoff Of Powertrain Business

Delphi Automotive Plc. shares jumped 6% premarket Wednesday, after the car parts maker posted stronger-than-expected earnings for the first quarter. Delphi said it had net income of $335 million, or $1.24 a share, in the first quarter, down from $425 million, or $1.53 a share, in the year-earlier period. Adjusted per share earnings came to $1.59 a share. Sales rose to $4.29 billion from $4.05 billion. The FactSet consensus was for EPS of $1.46 and revenue of $4.12 billion. The company said it is planning to spin off its powertrain segment, creating two independent companies. Looking ahead, Delphi said it expects second-quarter sales to range from 4.15 billion to $4.25 billion and adjusted EPS of $1.62 to $1.68, in line with current consensus forecasts. For the full year, it expects sales of $16.5 billion to $16.9 billion, and EPS of $6.40 to $6.70. The FactSet consensus is for EPS of $6.53 and sales of $16.8 billion. Shares have gained 16.5% in 2017 so far, while the S&P 500 has gained 6.8%.