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Westport Fuel (WPRT) Misses on Q3 Earnings, Lifts 2018 View

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Westport Fuel Systems Inc.’s (WPRT - Free Report) third-quarter 2018 adjusted net loss from continuing operations was 9 cents per share, wider than the Zacks Consensus Estimate of 5 cents. Net loss per share from continuing operations was 15 cents per share in third-quarter 2017.

Net loss from continuing operations in the reported quarter was $12.1 million compared with $16.2 million in third-quarter 2017.

Westport Fuel logged consolidated revenues of $65.5 million in the quarter, up 16% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $56.8 million. This upside was driven by strong sales growth in aftermarket and OEM business, which includes shipment of Westport HPDI 2.0 product.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

 

During the quarter under review, consolidated gross margin increased to $15.6 million (24% of sales) from $13.7 million (24% of sales) in the year-ago quarter.

Adjusted EBITDA amounted to $4.3 million compared with a negative $5.7 million in the prior-year quarter, reflecting higher revenues and CWI income, and lower operating expenses.

In third-quarter 2018, CWI revenues rose to $86.2 million from the prior-year quarter’s $75.5 million. This rise was driven by higher demand for near-zero emissions products and greater service parts revenues.

Financial Position

Westport Fuel had cash and cash equivalents of $54.2 million as of Sep 30, 2018, up from $51.2 million as of Jun 30, 2018.

At the end of the third quarter, cash outflow from operations was $16.2 million in comparison with the prior-year quarter’s $20.8 million.

Guidance

For 2018, Westport Fuel expects consolidated revenues from continuing operations to be $260-$275 million, up from the prior expectation of $235-$255 million.

Zacks Rank & Key Picks

Westport Fuel currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AutoZone, Inc. (AZO - Free Report) , General Motors Company (GM - Free Report) and Tesla, Inc. (TSLA - Free Report) . AutoZone and General Motors currently carry a Zacks Rank #2 (Buy), while Tesla sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AutoZone has an expected long-term growth rate of 12.2%. Over the past month, shares of the company have gained 2.1%.

General Motors has an expected long-term growth rate of 8.5%. Shares of the company have increased 12% over the past month.

Tesla has an expected long-term growth rate of 10%. Shares of the company have rallied 33.7% over the past month.

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