We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Westport (WPRT) Plunges 13.3% Since Q1 Loss Amid Chip Crunch
Read MoreHide Full Article
Westport Fuel Systems Inc.’s (WPRT - Free Report) shares have contracted more than 13% since the company announced first-quarter 2021 results on May 6, after the closing bell. Investors were left disappointed as Westport slipped to loss in the March-end quarter, snapping its profit streak since second-quarter 2020. Supply chain disruptions amid shortage of semiconductors, one-time severance cost and unfavorable forex transactions impacted first-quarter 2021 results.
For the quarter under review, the company incurred loss per share of 2 cents, in line with the Zacks Consensus Estimate. The loss, however, narrowed significantly from 11 cents a share reported in first-quarter 2020. Westport registered consolidated revenues of $76.4 million for the first quarter of 2021, up 14% year over year. The top line also outpaced the Zacks Consensus Estimate of $72 million.
Westport — which shares space with Magna International (MGA - Free Report) , Meritor , and American Axle & Manufacturing (AXL - Free Report) in the same industry — had cash and cash equivalents of $59.7 million as of Mar 31, 2021, down from $64.3 million at 2020-end. Long-term debt decreased to $37.7 million at the end of first-quarter 2021 from $45.6 million as of Dec 30, 2020. Westport currently carries a Zacks Rank #4 (Sell).
Original Equipment Manufacturer (OEM): Net sales of the segment soared 24.8% year over year to $42.7 million for the reported quarter, mainly on increase in sales volume in the light-duty OEM business in Russia and India. Higher sales volumes in the electronics business and improved HDPI product sales also aided revenues. Consequently, the segment’s operating loss narrowed to $6.5 million from $14.5 million incurred in first-quarter 2020.
Independent Aftermarket (IAM): Net sales of the segment totaled $33.7 million, slightly up from $33 million reported in the year-ago period. Increase in the average Euro rate against the U.S. dollar partially offset weak demand. The segment’s operating income declined from $4.8 million in first-quarter 2020 to $1.6 million for the period under discussion.
CWI Joint Venture (50%): This segment’s revenues totaled $41.1 million for the January-March period, up from the year-ago quarter’s $38.3 million due to higher engine sales. Operating income was $8.6 million, higher than $6.7 million recorded in the comparable year-ago period.
Corporate Business Segment: For the reported quarter, operating loss of the segment amounted to $3.3, significantly narrower than $10.2 million loss incurred in the year-earlier period.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Westport (WPRT) Plunges 13.3% Since Q1 Loss Amid Chip Crunch
Westport Fuel Systems Inc.’s (WPRT - Free Report) shares have contracted more than 13% since the company announced first-quarter 2021 results on May 6, after the closing bell. Investors were left disappointed as Westport slipped to loss in the March-end quarter, snapping its profit streak since second-quarter 2020. Supply chain disruptions amid shortage of semiconductors, one-time severance cost and unfavorable forex transactions impacted first-quarter 2021 results.
For the quarter under review, the company incurred loss per share of 2 cents, in line with the Zacks Consensus Estimate. The loss, however, narrowed significantly from 11 cents a share reported in first-quarter 2020. Westport registered consolidated revenues of $76.4 million for the first quarter of 2021, up 14% year over year. The top line also outpaced the Zacks Consensus Estimate of $72 million.
Westport — which shares space with Magna International (MGA - Free Report) , Meritor , and American Axle & Manufacturing (AXL - Free Report) in the same industry — had cash and cash equivalents of $59.7 million as of Mar 31, 2021, down from $64.3 million at 2020-end. Long-term debt decreased to $37.7 million at the end of first-quarter 2021 from $45.6 million as of Dec 30, 2020. Westport currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment soared 24.8% year over year to $42.7 million for the reported quarter, mainly on increase in sales volume in the light-duty OEM business in Russia and India. Higher sales volumes in the electronics business and improved HDPI product sales also aided revenues. Consequently, the segment’s operating loss narrowed to $6.5 million from $14.5 million incurred in first-quarter 2020.
Independent Aftermarket (IAM): Net sales of the segment totaled $33.7 million, slightly up from $33 million reported in the year-ago period. Increase in the average Euro rate against the U.S. dollar partially offset weak demand. The segment’s operating income declined from $4.8 million in first-quarter 2020 to $1.6 million for the period under discussion.
CWI Joint Venture (50%): This segment’s revenues totaled $41.1 million for the January-March period, up from the year-ago quarter’s $38.3 million due to higher engine sales. Operating income was $8.6 million, higher than $6.7 million recorded in the comparable year-ago period.
Corporate Business Segment: For the reported quarter, operating loss of the segment amounted to $3.3, significantly narrower than $10.2 million loss incurred in the year-earlier period.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>