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Strategic Alliances Aid Westport Fuel, SG&A Expenses Ail

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On Dec 28, we issued an updated research report on Westport Fuel Systems Inc. (WPRT - Free Report) .

The company is forming strategic relationships with the world's top engine producers and automotive manufacturers, which permit it to utilize its collaborators’ manufacturing plants, supply chains, back office systems plus distribution and sales networks.

The company also engages in regular investments and acquisitions that enable it to widen the product portfolio as well as access a large global distribution network.

Westport Fuel Systems Inc Price and Consensus

Also, it has been making efforts to strengthen its balance-sheet figures and boost liquidity. These initiatives include divesting the company’s non-core assets, repaying debts and issuing new common shares.

On Nov 14, Westport Fuel Systems reported adjusted net loss of 12 cents per share from continuing operations in third-quarter fiscal 2017, beating the Zacks Consensus Estimate of a loss of 15 cents. Quarterly consolidated revenues gained 8% year over year to $60.8 million. The top line also surpassed the consensus mark of $50.6 million.

However, the company is incurring continuous losses over the years, primarily due to merger with Fuel Systems as well as its operational expenses. Also, a rise in year-over-year SG&A expenses on bonus accruals and bad-debt expenditure is a concern for the company.

The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 20% downward over the last 30 days.

Price Performance

Shares of Westport Fuel have skyrocketed 223% year to date, substantially outperforming the 31.8% surge of the industry it belongs to.



Zacks Rank & Key Picks

Westport Fuel carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , Toyota Motor Corporation (TM - Free Report) and Oshkosh Corporation (OSK - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Axle has an expected long-term growth rate of 8.1%. The stock has seen the Zacks Consensus Estimate for annual earnings being inched up 0.6% over the last 60 days.

Toyota has an expected long-term growth rate of 6.2%. The stock has seen the Zacks Consensus Estimate for quarterly earnings being raised 4.3% over the last 60 days.

Oshkosh has an expected long-term growth rate of 16.5%. Over a month, shares of the company have gained 1.1%.

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