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BorgWarner, Inc.(BWA - Free Report) is a leading manufacturer of powertrain products for major automakers. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles), as well as automatic transmission and timing chain systems. These products are produced and sold worldwide, primarily to original equipment manufacturers.
BorgWarner is poised to benefit from strong demand, global expansion, capital deployment and restructuring of the Drivetrain segment. However, negative impact from foreign currencies, pricing pressure from original equipment manufacturers (OEMs) and intensifying competition are some concerns.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimates for BorgWarner have remained stable over the past 30 days.
Meanwhile, the company has a mixed record in terms of earnings surprises. BorgWarner beat earnings estimates in three of the trailing four quarters. However, the wide earnings miss in the second quarter of 2015 resulted in a negative average surprise of 0.35% over the last four quarters.
Investors have been eagerly awaiting BorgWarner’s latest earnings report to see whether it delivers an earnings beat in the fourth quarter.
Zacks Rank
BorgWarner currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Michigan-based company’s earnings announcement below:
Earnings
BorgWarner reported adjusted earnings of 84 cents per share in the second quarter of 2016, beating the Zacks Consensus Estimate of 82 cents. Adjusted earnings increased from 75 cents reported in the year-ago quarter.
Revenues
BorgWarner logged revenues of $2.33 billion, in-line with the Zacks Consensus Estimate. Further, revenues were 14.6% higher than a year-ago.
Key Stats/Developments to Note
Net sales for 2016 are projected to grow 13.5%–17.5%, compared to the prior range of 12.7%–17.5%. Excluding the impact of foreign currencies and the Remy International acquisition, net sales are expected to grow around 3%–5.5%.
Further, BorgWarner expects net earnings in the range of $3.16–$3.32 per share in 2016, compared to the prior range of $3.11–$3.32. The Remy International acquisition is likely to have a positive impact of 12 cents per share.
Market Reaction
BorgWarner’s shares have moved up 2.31% in pre-market trading so far following the release. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on BorgWarner’s earnings report!
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BorgWarner's (BWA) Q2 Earnings Beat Estimates, Rise Y/Y
BorgWarner, Inc.(BWA - Free Report) is a leading manufacturer of powertrain products for major automakers. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles), as well as automatic transmission and timing chain systems. These products are produced and sold worldwide, primarily to original equipment manufacturers.
BorgWarner is poised to benefit from strong demand, global expansion, capital deployment and restructuring of the Drivetrain segment. However, negative impact from foreign currencies, pricing pressure from original equipment manufacturers (OEMs) and intensifying competition are some concerns.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimates for BorgWarner have remained stable over the past 30 days.
Meanwhile, the company has a mixed record in terms of earnings surprises. BorgWarner beat earnings estimates in three of the trailing four quarters. However, the wide earnings miss in the second quarter of 2015 resulted in a negative average surprise of 0.35% over the last four quarters.
BORG WARNER INC Price and EPS Surprise
BORG WARNER INC Price and EPS Surprise | BORG WARNER INC Quote
Investors have been eagerly awaiting BorgWarner’s latest earnings report to see whether it delivers an earnings beat in the fourth quarter.
Zacks Rank
BorgWarner currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Michigan-based company’s earnings announcement below:
Earnings
BorgWarner reported adjusted earnings of 84 cents per share in the second quarter of 2016, beating the Zacks Consensus Estimate of 82 cents. Adjusted earnings increased from 75 cents reported in the year-ago quarter.
Revenues
BorgWarner logged revenues of $2.33 billion, in-line with the Zacks Consensus Estimate. Further, revenues were 14.6% higher than a year-ago.
Key Stats/Developments to Note
Net sales for 2016 are projected to grow 13.5%–17.5%, compared to the prior range of 12.7%–17.5%. Excluding the impact of foreign currencies and the Remy International acquisition, net sales are expected to grow around 3%–5.5%.
Further, BorgWarner expects net earnings in the range of $3.16–$3.32 per share in 2016, compared to the prior range of $3.11–$3.32. The Remy International acquisition is likely to have a positive impact of 12 cents per share.
Market Reaction
BorgWarner’s shares have moved up 2.31% in pre-market trading so far following the release. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on BorgWarner’s earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>