Back to top

Image: Bigstock

Westport's (WPRT) Earnings and Sales Miss Estimates in Q3

Read MoreHide Full Article

Westport Fuel Systems Inc. (WPRT - Free Report) posted third-quarter 2021 loss per share of 3 cents. The Zacks Consensus Estimate was pegged at break-even. The bottom line also deteriorated from earnings of 1 cent per share recorded in the year-ago period. The underperformance in the quarter under review can be attributed to higher operating expenses and unfavorable forex translations. Westport registered consolidated revenues of $74.3 million in the third quarter, rising 14% year over year. However, the top line missed the Zacks Consensus Estimate of $87 million.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote

Segmental Takeaways

Original Equipment Manufacturer (OEM): Net sales of the segment increased 28.3% year over year to $48 million in the reported quarter, mainly on higher sales volume in the light-duty OEM business, particularly sales to Indian and Russian OEMs, and additional revenues from the recently acquired fuel storage business. However, the segment reported an operating loss of $7.4 million, wider than the loss of $4.9 million incurred in third-quarter 2020.

Independent Aftermarket (IAM): Net sales of the segment totaled $26.3 million, down from $28 million reported in the year-ago period. This downside was due to sales slowdown arising from supply chain issues, including semiconductors shortages. The segment’s operating income came in at $0.7 million, falling from $1.7 million in third-quarter 2020.

CWI Joint Venture (50%): This segment’s revenues totaled $41.7 million, down from the year-ago quarter’s $42.2 million, as a result of delays in OEM orders stemming from supply chain issues in the quarter. Operating income was $5.1 million, declining from $6.3 million recorded in the year-ago period.

Corporate Business Segment: In the reported quarter, operating loss of the segment amounted to $1.9 million against a profit of $0.1 million reported in the year-earlier period.

Financial Position

Westport — which shares space with BorgWarner (BWA - Free Report) , Magna International (MGA - Free Report) , and Allison Transmission (ALSN - Free Report) — had cash and cash equivalents of $142 million as of Sep 30, 2021, up from $64.3 million at the end of 2020. Long-term debt decreased to $33.3 million at the end of third-quarter 2021 from $45.7 million as of Dec 30, 2020.

Westport currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in