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Westport Fuel Systems (WPRT) Q1 Earnings: What's in Store?
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Westport Fuel Systems Inc. (WPRT - Free Report) will report first-quarter 2017 results after the market closes on May 11. In the last quarter, the company missed earnings by 60%. The company has fallen short of expectations in three of the trailing four quarters, with an average miss of 31.71%.
Let’s see how things are shaping up for this announcement.
Westport Fuel Systems regularly launches new products to enhance sales. Moreover, the company has strategic relationships with engine producers, truck manufacturers as well as automotive producers. These relations enable the company to utilize its collaborators’ production plants, supply chains, back office systems as well as 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. Moreover, the company is in talks to sell some of its non-core assets which will boost liquidity.
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 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 -13.33% as the Most Accurate estimate stands at a loss of 17 cents while the Zacks Consensus Estimate is 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 negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
Westport Fuel Systems outperformed the Zacks categorized Automotive-Original Equipment industry in the last three months. During this period, the company’s share price increased 14.4% while the industry saw a 5.2% increase.
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:
Nordson Corporation (NDSN - Free Report) is expected to post results on May 22. The company also carries a Zacks Rank #2 and has an Earnings ESP of +0.77%.
Wal-Mart Stores, Inc. (WMT - Free Report) , also a Zacks Rank #2 stock, has an Earnings ESP of +2.08%. The company is expected to report its first-quarter financial numbers on May 18.
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Westport Fuel Systems (WPRT) Q1 Earnings: What's in Store?
Westport Fuel Systems Inc. (WPRT - Free Report) will report first-quarter 2017 results after the market closes on May 11. In the last quarter, the company missed earnings by 60%. The company has fallen short of expectations in three of the trailing four quarters, with an average miss of 31.71%.
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 enhance sales. Moreover, the company has strategic relationships with engine producers, truck manufacturers as well as automotive producers. These relations enable the company to utilize its collaborators’ production plants, supply chains, back office systems as well as 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. Moreover, the company is in talks to sell some of its non-core assets which will boost liquidity.
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 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 -13.33% as the Most Accurate estimate stands at a loss of 17 cents while the Zacks Consensus Estimate is 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 negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
Westport Fuel Systems outperformed the Zacks categorized Automotive-Original Equipment industry in the last three months. During this period, the company’s share price increased 14.4% while the industry saw a 5.2% increase.
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:
Best Buy Co., Inc. (BBY - Free Report) is expected to release first-quarter 2017 earnings on May 25. The company sports a Zacks Rank #2 and has an Earnings ESP of +12.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nordson Corporation (NDSN - Free Report) is expected to post results on May 22. The company also carries a Zacks Rank #2 and has an Earnings ESP of +0.77%.
Wal-Mart Stores, Inc. (WMT - Free Report) , also a Zacks Rank #2 stock, has an Earnings ESP of +2.08%. The company is expected to report its first-quarter financial numbers on May 18.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>