A month has gone by since the last earnings report for BorgWarner (BWA Quick QuoteBWA - Free Report) . Shares have lost about 15.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is BorgWarner due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

BorgWarner's Q4 Earnings & Sales Top Estimates

BorgWarner reported adjusted earnings of $1.06 per share for fourth-quarter 2021, declining from $1.18 recorded in the prior-year period. The bottom line, however, beat the Zacks Consensus Estimate of 74 cents per share. Higher-than-anticipated revenues across all segments resulted in the outperformance. The automotive equipment supplier reported net sales of $3,655 million, outpacing the Zacks Consensus Estimate of $3,462 million. The top-line figure, however, declined 6.9% year over year.

Segmental Performance

Air Management: Net sales totaled $1,762 million for the reported quarter compared with $1,942 million registered in the year-ago period. The sales figure, however, topped the Zacks Consensus Estimate of $1,710 million. Adjusted EBIT of $257 million declined from $301 million recorded in fourth-quarter 2020.

e-Propulsion & Drivetrain: Sales from the segment came in at $1,352 million, down from $1,447 million in fourth-quarter 2020. The sales figure, however, came ahead of the Zacks Consensus Estimate of $1,257 million. The segment generated an adjusted EBIT of $132 million for fourth-quarter 2021 compared with $164 million recorded in the corresponding period of 2020.

Fuel Injection: Sales from the segment totaled $451 million, down from $479 million generated in the comparable year-ago period. The metric, however, surpassed the consensus estimate of $413 million. The segment generated an adjusted EBIT of $62 million, up from $39 million recorded in the corresponding period of 2020.

Aftermarket: Sales from the segment totaled $203 million, up 4.6% year over year. The figure outpaced the Zacks Consensus Estimate of $188 million. The segment generated an adjusted EBIT of $25 million, up from $22 million recorded in the corresponding period of 2020.

Financial Position

As of Dec 31, 2021, BorgWarner had $1,841 million in cash compared with $1,650 million on Dec 31, 2020. For the December-end quarter, long-term debt was $4,261 million, up from $3,738 million recorded on Dec 31, 2020.

Net cash provided by operating activities was $1,306 million for 2021. Capital expenditure and FCF totaled $666 million and $640 million, respectively.

2022 Projections

For full-year 2022, BorgWarner anticipates net sales within $15.9-$16.5 billion, indicating an increase from $14.8 billion recorded in 2021. Importantly, the company envisions electric vehicle revenues of more than $800 million in 2022, doubling from 2021 levels. Adjusted operating margin and net earnings are expected in the band of 10.2-10.7% and $3.71-$4.19, respectively. Free cash flow is projected in the band of $700-$800 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, BorgWarner has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

BorgWarner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.