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Westport Fuel Systems' Loss Remains Despite Merger Gains
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On Aug 12, 2016, we issued an updated research report on Westport Fuel Systems Inc. (WPRT - Free Report) . It’s expected the merged company will enjoy significant savings of cost and effort, and long-term benefits in achieving its goals. While the company’s frequent product launches will help boost sales, there are concerns about its sustained losses and a weak cash position.
Westport Fuel Systems recorded adjusted loss of 40 cents per share in the second quarter of 2016, wider than the year-ago loss of 27 cents. Moreover, the adjusted loss, which excludes 44 cents from non-recurring items, was much wider than the Zacks Consensus Estimate of a loss of 22 cents.
Westport Fuel Systems logged revenues of $44.4 million in the second quarter of 2016, up 59.4% year over year, from the cumulated effects of Fuel Systems' revenues. Moreover, the figure surpassed the Zacks Consensus Estimate of $39 million.
Westport Fuel Systems regularly makes investments and acquisitions related to technologies and businesses that complement or help in commercialization of its products. Westport Innovations’ merger agreement with Fuel Systems in Jun 2016 is expected to result in cost savings from merger synergies of over $30 million annually, from 2018. The combined company, named Westport Fuel Systems, will gain from the complementary products and strong global presence of Westport Innovations and Fuel Systems.
Westport Fuel Systems regularly launches new products to boost sales. In the second quarter of 2016, CWI launched a 6.7 liter medium-duty natural gas engine – ISB6.7 G – aimed at the Type C school bus market.
However, Westport Fuel Systems has been incurring losses over the past several years. As a result, it had accumulated deficit of $882.9 million as of Jun 30, 2016.
Due to consistent losses, the company’s solvency depends on its ability to generate cash or obtain new sources of financing. However, Westport Fuel Systems used $69.1 million cash in operations in 2015 and $46.9 million in the first half of 2016.
Westport Fuel Systems is a developer and supplier of advanced alternative fuel systems and components. Its peers in the automotive industry include Tenneco Inc. , Delphi Automotive PLC and Meritor, Inc. .
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Westport Fuel Systems' Loss Remains Despite Merger Gains
On Aug 12, 2016, we issued an updated research report on Westport Fuel Systems Inc. (WPRT - Free Report) . It’s expected the merged company will enjoy significant savings of cost and effort, and long-term benefits in achieving its goals. While the company’s frequent product launches will help boost sales, there are concerns about its sustained losses and a weak cash position.
Westport Fuel Systems recorded adjusted loss of 40 cents per share in the second quarter of 2016, wider than the year-ago loss of 27 cents. Moreover, the adjusted loss, which excludes 44 cents from non-recurring items, was much wider than the Zacks Consensus Estimate of a loss of 22 cents.
Westport Fuel Systems logged revenues of $44.4 million in the second quarter of 2016, up 59.4% year over year, from the cumulated effects of Fuel Systems' revenues. Moreover, the figure surpassed the Zacks Consensus Estimate of $39 million.
Westport Fuel Systems regularly makes investments and acquisitions related to technologies and businesses that complement or help in commercialization of its products. Westport Innovations’ merger agreement with Fuel Systems in Jun 2016 is expected to result in cost savings from merger synergies of over $30 million annually, from 2018. The combined company, named Westport Fuel Systems, will gain from the complementary products and strong global presence of Westport Innovations and Fuel Systems.
Westport Fuel Systems regularly launches new products to boost sales. In the second quarter of 2016, CWI launched a 6.7 liter medium-duty natural gas engine – ISB6.7 G – aimed at the Type C school bus market.
However, Westport Fuel Systems has been incurring losses over the past several years. As a result, it had accumulated deficit of $882.9 million as of Jun 30, 2016.
Due to consistent losses, the company’s solvency depends on its ability to generate cash or obtain new sources of financing. However, Westport Fuel Systems used $69.1 million cash in operations in 2015 and $46.9 million in the first half of 2016.
WESTPORT FUEL Price and Consensus
WESTPORT FUEL Price and Consensus | WESTPORT FUEL Quote
Westport Fuel Systems is a developer and supplier of advanced alternative fuel systems and components. Its peers in the automotive industry include Tenneco Inc. , Delphi Automotive PLC and Meritor, Inc. .
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 >>