Autoliv, Inc. reported quarterly earnings of $2.32 per share. This is better than the Zacks Consensus Estimate of $2.10 and also surpasses last year’s earnings of $1.84 per share. This shows an earnings surprise of +10.48%. Over the last four quarters, the company has consistently outperformed earnings estimates, with a +6.76% surprise in the most recent quarter. For the quarter ending September 2025, Autoliv reported $2.71 billion in revenue, exceeding the Zacks estimate by 3.10%, compared to $2.56 billion a year ago. Since the start of this year, Autoliv’s shares have risen about 29.2%, which is better than the S&P 500’s gain of 12.7%. Future stock movements will depend on management’s upcoming comments and earnings forecasts. The consensus EPS estimate for the next quarter is $2.92, with projected revenues of $2.7 billion. For this fiscal year, the EPS estimate stands at $9.32, with total revenues expected to hit $10.64 billion. In comparison, XPEL, Inc., another player in the Automotive – Original Equipment industry, is expected to report quarterly earnings of $0.48 per share, down 11.1% from last year, with revenues of $117.01 million, a 3.7% rise from the previous year. Autoliv is showing strong performance with consistent earnings and revenue beats this quarter. This trend indicates strength in their operations and market position. For derivative traders, earnings typically lead to a drop in implied volatility, creating cheaper options prices. This “IV crush” offers a good chance to enter new positions. It’s important to evaluate whether this lower volatility justifies a favorable stock move. The overall market outlook is cautiously optimistic. Recent data shows that U.S. light vehicle sales for September 2025 reached an annual rate of 15.9 million units, indicating steady consumer demand. However, we must consider the production issues faced by the industry in 2022 and 2023, highlighting their sensitivity to supply chain stability. Given the stock’s impressive 29.2% rise this year, simply buying call options might be risky. Instead, we could explore a bull call spread, which allows us to profit from further upside while controlling our risk and lowering initial costs. This strategy works well with a steady rise rather than a sudden jump. Alternatively, the Zacks #3 (Hold) rating indicates that the stock might trade sideways or align with the market. If we think the good news is already reflected in the price, selling out-of-the-money puts could be a smart move. This allows us to earn a premium while specifying a lower price at which we would feel comfortable owning the stock. The main focus now will be management’s guidance during their earnings call, which will likely affect analyst predictions in the days to come. It’s also important to keep an eye on the upcoming earnings from XPEL, Inc. as their results will be another indicator of the health of the automotive equipment sector.

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