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Westport (WPRT) Q3 Loss In Line, Sales Lag Estimates & Fall Y/Y
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Westport Fuel Systems Inc. (WPRT - Free Report) incurred a loss of 7 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate but wider than a loss of 3 cents posted in the year-ago quarter. Westport registered consolidated revenues of $71.2 million in the quarter, missing the Zacks Consensus Estimate of $76 million. The top line also declined 4% from the year-ago level of $74.3 million.
Westport generated an adjusted EBITDA of negative $4.5 million in the third quarter, deteriorating from negative $1.4 million in the year-ago period.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Original Equipment Manufacturer (OEM): Net sales of the segment totaled 44.1 million, down from $48 million in the third quarter of 2021. The segment reported an operating loss of $7.3 million, compared with a loss of $7.4 million incurred in the year-ago period.
Independent Aftermarket (IAM): Net sales of the segment totaled $27.1 million, compared with $26.3 million in the year-ago period. In the quarter, the segment incurred an operating income of $2.2 million, rising from $0.7 million in third-quarter 2021.
Corporate Business Segment: In the reported quarter, operating loss for the segment amounted to $5.8 million, widening from a loss of $1.9 million reported in the year-earlier period.
Financials
Westport had cash and cash equivalents of $86.5 million as of Sep 30, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.8 million at the end of third-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $8.59 million during the quarter under review.
BorgWarnerInc. (BWA - Free Report) : BorgWarner reported adjusted earnings of $1.24 per share for third-quarter 2022, up from 80 cents recorded in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.02 per share. The automotive equipment supplier reported net sales of $4,060 million, outpacing the Zacks Consensus Estimate of $3,977 million. The top line also moved up 18.8% year over year.
For full-year 2022, the company anticipates net sales within $15.4-$15.7 billion, indicating year-over-year growth of 12-14%. Importantly, BorgWarner envisions electric vehicle revenues of around $850 million for 2022, doubling from 2021 levels. Adjusted operating margin is expected in the band of 10-12%. Adjusted net earnings are estimated to be within $4.25-$4.45 share. Free cash flow is projected in the band of $650-$750 million.
Allison TransmissionHoldings (ALSN - Free Report) : Allison posted third-quarter earnings of $1.45 a share, which topped the Zacks Consensus Estimate of $1.31. The bottom line increased 63% on a year-over-year basis. Quarterly revenues of $710 million grew 25% from the year-ago period and crossed the consensus mark of $691 million.
Allison modified its full-year 2022 guidance. It now estimates net sales in the band of $2,690-$2,740 million compared with the prior range of $2,650-$2,750 million. Net income is now expected in the band of $490-$510 million, up from the prior estimate of $450-$500 million, and adjusted EBITDA is now estimated within $915-$945 million compared with $885-$955 million previously. Adjusted free cash flow is now estimated within $460-$480 million compared with $420-$480 million projected previously. Its net cash provided by operating activities is expected to be within $620-$650 million, compared with $590-$660 million expected previously.
Autoliv Inc. (ALV - Free Report) : Autoliv reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million for the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
The company forecasts full-year 2022 organic sales growth of around 15%, compared with 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.
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Westport (WPRT) Q3 Loss In Line, Sales Lag Estimates & Fall Y/Y
Westport Fuel Systems Inc. (WPRT - Free Report) incurred a loss of 7 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate but wider than a loss of 3 cents posted in the year-ago quarter. Westport registered consolidated revenues of $71.2 million in the quarter, missing the Zacks Consensus Estimate of $76 million. The top line also declined 4% from the year-ago level of $74.3 million.
Westport generated an adjusted EBITDA of negative $4.5 million in the third quarter, deteriorating from negative $1.4 million in the year-ago period.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment totaled 44.1 million, down from $48 million in the third quarter of 2021. The segment reported an operating loss of $7.3 million, compared with a loss of $7.4 million incurred in the year-ago period.
Independent Aftermarket (IAM): Net sales of the segment totaled $27.1 million, compared with $26.3 million in the year-ago period. In the quarter, the segment incurred an operating income of $2.2 million, rising from $0.7 million in third-quarter 2021.
Corporate Business Segment: In the reported quarter, operating loss for the segment amounted to $5.8 million, widening from a loss of $1.9 million reported in the year-earlier period.
Financials
Westport had cash and cash equivalents of $86.5 million as of Sep 30, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.8 million at the end of third-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $8.59 million during the quarter under review.
WPRT carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
BorgWarner Inc. (BWA - Free Report) : BorgWarner reported adjusted earnings of $1.24 per share for third-quarter 2022, up from 80 cents recorded in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.02 per share. The automotive equipment supplier reported net sales of $4,060 million, outpacing the Zacks Consensus Estimate of $3,977 million. The top line also moved up 18.8% year over year.
For full-year 2022, the company anticipates net sales within $15.4-$15.7 billion, indicating year-over-year growth of 12-14%. Importantly, BorgWarner envisions electric vehicle revenues of around $850 million for 2022, doubling from 2021 levels. Adjusted operating margin is expected in the band of 10-12%. Adjusted net earnings are estimated to be within $4.25-$4.45 share. Free cash flow is projected in the band of $650-$750 million.
Allison Transmission Holdings (ALSN - Free Report) : Allison posted third-quarter earnings of $1.45 a share, which topped the Zacks Consensus Estimate of $1.31. The bottom line increased 63% on a year-over-year basis. Quarterly revenues of $710 million grew 25% from the year-ago period and crossed the consensus mark of $691 million.
Allison modified its full-year 2022 guidance. It now estimates net sales in the band of $2,690-$2,740 million compared with the prior range of $2,650-$2,750 million. Net income is now expected in the band of $490-$510 million, up from the prior estimate of $450-$500 million, and adjusted EBITDA is now estimated within $915-$945 million compared with $885-$955 million previously. Adjusted free cash flow is now estimated within $460-$480 million compared with $420-$480 million projected previously. Its net cash provided by operating activities is expected to be within $620-$650 million, compared with $590-$660 million expected previously.
Autoliv Inc. (ALV - Free Report) : Autoliv reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million for the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
The company forecasts full-year 2022 organic sales growth of around 15%, compared with 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.