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Westport Fuel (WPRT) Up 23% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Westport Fuel Systems Inc (WPRT - Free Report) . Shares have added about 23% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Westport Fuel Systems Q1 Loss Narrower than Expected
Westport Fuel Systems’ first-quarter 2017 loss from continuing operations came in at $0.12 per share, narrower than the year-ago loss of $0.38. Moreover, the adjusted loss was also narrower than the Zacks Consensus Estimate of a loss of $0.15.
Total net loss amounted to $12.8 million. The reported net loss for first-quarter 2016 was $24.5 million.
Westport Fuel Systems logged revenues of $60 million in the reported quarter, up 150% year over year. Growth was primarily driven by the addition of Fuel Systems’ revenues. However, the top line missed the Zacks Consensus Estimate of $78 million.
Consolidated gross margin increased to $17.5 million (29.2% of sales) in the reported quarter from $6.4 million (26.7% of sales) recorded in the year-ago quarter. The improvement in gross margin was mainly due to the merger with Fuel Systems as well as improved operating performance.
Consolidated adjusted EBITDA amounted to a negative $4.1 million compared with a negative $11.9 million in the prior-year quarter.
Segment Details
Automotive Business Unit recorded a 142.8% increase in revenues to $56.3 million in the quarter due to lower Euro during the quarter. Gross margin increased to $13.8 million (25%) from $5.6 million (24%) in the prior-year quarter.
Corporate and Technology Investments Business Unit revenues were $3.7 million in the quarter, compared with $0.8 million in the year-ago period.
The CWI joint venture recorded an 8.7% increase in revenues to $70.7 million, mainly owing to the increase of the natural gas engine population in service. CWI operating income attributable to Westport Fuel Systems was $1.8 million in the reported quarter, up from the prior-year figure of $0.5 million due to improved shipments and higher gross margins.
Financial Position
Westport Fuel Systems had cash and cash equivalents of $47.3 million as of Mar 31, 2017, down from $60.1 million as of Mar 31, 2016. Long-term debt was $78.4 million as of Mar 31, 2017, up from $65.4 million as of Mar 31, 2016.
In first-quarter 2017, Westport Fuel Systems’ cash used in operations was $16.8 million, compared with $23.1 million used in the year-ago period.
The company has not provided any guidance for revenues or earnings. It is in the final development stage of the launch of commercial components of HPDI 2.0.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, the stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Westport Fuel (WPRT) Up 23% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Westport Fuel Systems Inc (WPRT - Free Report) . Shares have added about 23% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Westport Fuel Systems Q1 Loss Narrower than Expected
Westport Fuel Systems’ first-quarter 2017 loss from continuing operations came in at $0.12 per share, narrower than the year-ago loss of $0.38. Moreover, the adjusted loss was also narrower than the Zacks Consensus Estimate of a loss of $0.15.
Total net loss amounted to $12.8 million. The reported net loss for first-quarter 2016 was $24.5 million.
Westport Fuel Systems logged revenues of $60 million in the reported quarter, up 150% year over year. Growth was primarily driven by the addition of Fuel Systems’ revenues. However, the top line missed the Zacks Consensus Estimate of $78 million.
Consolidated gross margin increased to $17.5 million (29.2% of sales) in the reported quarter from $6.4 million (26.7% of sales) recorded in the year-ago quarter. The improvement in gross margin was mainly due to the merger with Fuel Systems as well as improved operating performance.
Consolidated adjusted EBITDA amounted to a negative $4.1 million compared with a negative $11.9 million in the prior-year quarter.
Segment Details
Automotive Business Unit recorded a 142.8% increase in revenues to $56.3 million in the quarter due to lower Euro during the quarter. Gross margin increased to $13.8 million (25%) from $5.6 million (24%) in the prior-year quarter.
Corporate and Technology Investments Business Unit revenues were $3.7 million in the quarter, compared with $0.8 million in the year-ago period.
The CWI joint venture recorded an 8.7% increase in revenues to $70.7 million, mainly owing to the increase of the natural gas engine population in service. CWI operating income attributable to Westport Fuel Systems was $1.8 million in the reported quarter, up from the prior-year figure of $0.5 million due to improved shipments and higher gross margins.
Financial Position
Westport Fuel Systems had cash and cash equivalents of $47.3 million as of Mar 31, 2017, down from $60.1 million as of Mar 31, 2016. Long-term debt was $78.4 million as of Mar 31, 2017, up from $65.4 million as of Mar 31, 2016.
In first-quarter 2017, Westport Fuel Systems’ cash used in operations was $16.8 million, compared with $23.1 million used in the year-ago period.
The company has not provided any guidance for revenues or earnings. It is in the final development stage of the launch of commercial components of HPDI 2.0.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Westport Fuel Systems Inc Price and Consensus
Westport Fuel Systems Inc Price and Consensus | Westport Fuel Systems Inc Quote
VGM Scores
At this time, the stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.