Westport Fuel Systems Inc.’s ( WPRT Quick Quote 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 Quick Quote MGA - Free Report) , Meritor ( MTOR Quick Quote MTOR - Free Report) , and American Axle & Manufacturing ( AXL Quick Quote 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).
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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
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