Westport Fuel Systems Inc. (WPRT Quick QuoteWPRT - Free Report) will report fourth-quarter 2016 results after the market closes on Mar 27. In the last quarter, the company posted a positive earnings surprise of 39.13%.

Let’s see how things are shaping up for this announcement.

Westport Fuel Systems Inc Price and EPS Surprise

 

Westport Fuel Systems Inc Price and EPS Surprise | Westport Fuel Systems Inc Quote

Factors to Consider

Westport Fuel Systems regularly launches new products to boost sales. Moreover, the company has strategic relationships with engine producers, truck manufacturers as well as automotive manufacturers. These associations enable the company to utilize its collaborators’ production plants, supply chains, back office systems, and distribution and sales networks, thereby aiding significant cost savings.

Westport Fuel Systems regularly makes investments and acquisitions related to technologies and businesses that help in the commercialization of its products. The company also completed the merger agreement with Fuel Systems Solutions, Inc. This merger will lead to a stronger balance sheet, better liquidity, cost reduction, technology consolidation, a wider product portfolio and a large global distribution network.

However, Westport Fuel Systems has been incurring losses over the past several years. The company’s CWI joint venture has also been facing challenges due to an industry decline in truck volumes. The venture’s revenues have been decreasing significantly. Further, Westport Fuel Systems faces challenges due to fluctuations in exchange rates, low oil prices and economic volatility in some markets.

Earnings Whispers

Our proven model does not conclusively show that Westport Fuel Systems is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1(Strong Buy), 2(Buy) or 3(Hold) for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Westport Fuel Systems is 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at a loss of 15 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Westport Fuel Systems carries a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Allison Transmission Holdings, Inc. (ALSN Quick QuoteALSN - Free Report) is expected to release first-quarter 2017 earnings on Apr 24. The company sports a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +2.94%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meritor, Inc. is expected to post second-quarter fiscal 2017 results on May 3. The company flaunts a Zacks Rank #1 and has an Earnings ESP of +5.56%.

Wabash National Corporation (WNC Quick QuoteWNC - Free Report) – also a Zacks Rank #1 stock – has an Earnings ESP of +7.41%. The company is expected to report its first-quarter financial numbers on Apr 25.

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