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Westport (WPRT) Q2 Earnings Beat Estimates, Revenues Down
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Westport Fuel Systems Inc. (WPRT - Free Report) reported earnings per share of 2 cents in second-quarter 2020, as against the Zacks Consensus Estimate of loss of 8 cents. The company had reported a loss of 2 cents per share in the year-ago period. Higher revenues in the Corporate Business segment resulted in this outperformance.
Net income from continuing operations in the reported quarter was $3 million, as against the net loss of $2.3 million posted in second-quarter 2019.
Westport registered consolidated revenues of $36 million in the second quarter, down 56.1% year over year. The revenues also missed the Zacks Consensus Estimate of $38 million.
During the second quarter, consolidated gross margin decreased to $12.2 million from the prior year’s $19.3 million on lower overall sales and contractual HPDI price reductions. Adjusted EBITDA amounted to $6.2 million compared with the prior-year quarter’s profit of $8.1 million.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Original Equipment Manufacturer Segment (OEM): Net sales of the segment plummeted 57.4% year over year to $19.1 million in the reported quarter mainly due to the coronavirus crisis-related shutdowns, and lower light-duty OEM sales to Russian and German OEMs. The segment’s operating income came in at $1.1 million, as against the loss of $3 million incurred in second-quarter 2019.
Independent Aftermarket Segment (IAM): Net sales of the segment plunged 55% year over year to $16.9 million in the reported quarter on the pandemic-induced supply-chain disruptions. The segment reported an operating loss of $1.2 million, as against the prior-year quarter’s profit of $3.5 million.
CWI Joint Venture (50%): This segment’s revenues totaled $33.2 million, down from the year-ago quarter’s $42 million. Operating income was $5.3 million, down from the second-quarter 2019 level of $7.8 million primarily on dismal revenues.
Corporate Business Segment: Operating profit of the segment amounted to $1.8 million, as against the operating loss of $6.4 million incurred in the year-earlier period. The segment’s depreciation and amortization expenses came in at $0.1 million, flat year over year.
Financial Position
Westport had cash and cash equivalents of $29 million as of Jun 30, 2020, down from $46 million as of Dec 31, 2019. Total debt rose to $5.3 million in the reported quarter from $49 million as of Dec 31, 2019.
Zacks Rank & Other Stocks to Consider
Westport currently flaunts a Zacks Rank #1 (Strong Buy).
Shares of Sonic Automotive have appreciated 28.1%, year to date, compared with the industry’s rise of 9.6%.
Shares of AutoNation have rallied 11.6%, year to date, compared with the industry’s gain of 9.6%.
Shares of LCI Industries have appreciated 18.9%, year to date, as against the industry’s decline of 4.8%.
Zacks’ Single Best Pick to Double
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With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
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Westport (WPRT) Q2 Earnings Beat Estimates, Revenues Down
Westport Fuel Systems Inc. (WPRT - Free Report) reported earnings per share of 2 cents in second-quarter 2020, as against the Zacks Consensus Estimate of loss of 8 cents. The company had reported a loss of 2 cents per share in the year-ago period. Higher revenues in the Corporate Business segment resulted in this outperformance.
Net income from continuing operations in the reported quarter was $3 million, as against the net loss of $2.3 million posted in second-quarter 2019.
Westport registered consolidated revenues of $36 million in the second quarter, down 56.1% year over year. The revenues also missed the Zacks Consensus Estimate of $38 million.
During the second quarter, consolidated gross margin decreased to $12.2 million from the prior year’s $19.3 million on lower overall sales and contractual HPDI price reductions. Adjusted EBITDA amounted to $6.2 million compared with the prior-year quarter’s profit of $8.1 million.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Operational Results
Original Equipment Manufacturer Segment (OEM): Net sales of the segment plummeted 57.4% year over year to $19.1 million in the reported quarter mainly due to the coronavirus crisis-related shutdowns, and lower light-duty OEM sales to Russian and German OEMs. The segment’s operating income came in at $1.1 million, as against the loss of $3 million incurred in second-quarter 2019.
Independent Aftermarket Segment (IAM): Net sales of the segment plunged 55% year over year to $16.9 million in the reported quarter on the pandemic-induced supply-chain disruptions. The segment reported an operating loss of $1.2 million, as against the prior-year quarter’s profit of $3.5 million.
CWI Joint Venture (50%): This segment’s revenues totaled $33.2 million, down from the year-ago quarter’s $42 million. Operating income was $5.3 million, down from the second-quarter 2019 level of $7.8 million primarily on dismal revenues.
Corporate Business Segment: Operating profit of the segment amounted to $1.8 million, as against the operating loss of $6.4 million incurred in the year-earlier period. The segment’s depreciation and amortization expenses came in at $0.1 million, flat year over year.
Financial Position
Westport had cash and cash equivalents of $29 million as of Jun 30, 2020, down from $46 million as of Dec 31, 2019. Total debt rose to $5.3 million in the reported quarter from $49 million as of Dec 31, 2019.
Zacks Rank & Other Stocks to Consider
Westport currently flaunts a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the auto sector include Sonic Automotive Inc. (SAH - Free Report) , AutoNation (AN - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic Automotive have appreciated 28.1%, year to date, compared with the industry’s rise of 9.6%.
Shares of AutoNation have rallied 11.6%, year to date, compared with the industry’s gain of 9.6%.
Shares of LCI Industries have appreciated 18.9%, year to date, as against the industry’s decline of 4.8%.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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