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Things to Consider Ahead of BorgWarner's (BWA) Q4 Earnings
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BorgWarner Inc. (BWA - Free Report) is slated to release fourth-quarter 2021 results on Feb 15, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. The consensus mark for fourth-quarter earnings per share has witnessed an upward revision of 3 cents in the past 30 days.
This automotive equipment supplier registered higher-than-anticipated earnings in the last reported quarter on better-than-anticipated revenues from Air Management and Aftermarket segments. Over the preceding four quarters, the company exceeded earnings expectations on all occasions, with the average being 30.9%. This is depicted in the graph below:
Earnings Whispers
Our proven model predicts an earnings beat for BorgWarner this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here as elaborated below.
Earnings ESP: BorgWarner has an Earnings ESP of +8.32%. This is because the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BorgWarner currently holds a Zacks Rank of 3 (Hold).
The global light vehicle production declined 13% year over year in fourth-quarter 2021. The decline in production is likely to have hurt the demand for BorgWarner’s offerings, which may impact the upcoming results. Consequently, the Zacks Consensus Estimate for BWA’s fourth-quarter 2021 earnings and revenues implies a year-over-year fall of 37.29% and 12%, respectively.
In fact, during its last earnings call, BorgWarner trimmed its full-year revenue and operating income guidance amid semiconductor supply shortage and rising commodity prices. BWA anticipated raw material costs for the to-be-reported period to increase in the range of $5-$15 million from third-quarter 2021 levels.
Here’s a sneak peek into BorgWarner’s fourth-quarter 2021 revenue estimates across all segments.
The Zacks Consensus Estimate for BorgWarner’s Air Management segment’s sales is pegged at $1,710 million for the period in discussion, suggesting a fall from the $1,942 million reported in fourth-quarter 2020. The metric, however, came in at $1,671 million in the third quarter.
The consensus mark for fourth-quarter sales from the e-Propulsion & Drivetrain segment is pegged at $1,257 million, suggesting a drop from the $1,447 million registered in fourth-quarter 2020. Segmental sales, however, imply a sequential increase of $34 million.
The consensus mark for the Fuel Injection unit’s quarterly sales is pegged at $413 million, calling for a decline of 13.7% year over year. The metric came in at $420 million in the last reported quarter.
The consensus mark for quarterly sales from the Aftermarket unit is pinned at $188 million, indicating a fall from the $194 million and $227 million recorded in fourth-quarter 2020 and third-quarter 2021, respectively.
Other Stocks With Favorable Combinations
Here are a few other stocks from the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $3.17 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the last four quarters, with an average of 16%.
Image: Bigstock
Things to Consider Ahead of BorgWarner's (BWA) Q4 Earnings
BorgWarner Inc. (BWA - Free Report) is slated to release fourth-quarter 2021 results on Feb 15, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. The consensus mark for fourth-quarter earnings per share has witnessed an upward revision of 3 cents in the past 30 days.
This automotive equipment supplier registered higher-than-anticipated earnings in the last reported quarter on better-than-anticipated revenues from Air Management and Aftermarket segments. Over the preceding four quarters, the company exceeded earnings expectations on all occasions, with the average being 30.9%. This is depicted in the graph below:
Earnings Whispers
Our proven model predicts an earnings beat for BorgWarner this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here as elaborated below.
Earnings ESP: BorgWarner has an Earnings ESP of +8.32%. This is because the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BorgWarner currently holds a Zacks Rank of 3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Predictions
The global light vehicle production declined 13% year over year in fourth-quarter 2021. The decline in production is likely to have hurt the demand for BorgWarner’s offerings, which may impact the upcoming results. Consequently, the Zacks Consensus Estimate for BWA’s fourth-quarter 2021 earnings and revenues implies a year-over-year fall of 37.29% and 12%, respectively.
In fact, during its last earnings call, BorgWarner trimmed its full-year revenue and operating income guidance amid semiconductor supply shortage and rising commodity prices. BWA anticipated raw material costs for the to-be-reported period to increase in the range of $5-$15 million from third-quarter 2021 levels.
Here’s a sneak peek into BorgWarner’s fourth-quarter 2021 revenue estimates across all segments.
The Zacks Consensus Estimate for BorgWarner’s Air Management segment’s sales is pegged at $1,710 million for the period in discussion, suggesting a fall from the $1,942 million reported in fourth-quarter 2020. The metric, however, came in at $1,671 million in the third quarter.
The consensus mark for fourth-quarter sales from the e-Propulsion & Drivetrain segment is pegged at $1,257 million, suggesting a drop from the $1,447 million registered in fourth-quarter 2020. Segmental sales, however, imply a sequential increase of $34 million.
The consensus mark for the Fuel Injection unit’s quarterly sales is pegged at $413 million, calling for a decline of 13.7% year over year. The metric came in at $420 million in the last reported quarter.
The consensus mark for quarterly sales from the Aftermarket unit is pinned at $188 million, indicating a fall from the $194 million and $227 million recorded in fourth-quarter 2020 and third-quarter 2021, respectively.
Other Stocks With Favorable Combinations
Here are a few other stocks from the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $3.17 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the last four quarters, with an average of 16%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.