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BorgWarner (BWA) to Report Q4 Earnings: What's in Store?
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BorgWarner (BWA - Free Report) is slated to release fourth-quarter 2023 results on Feb 8, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 93 cents and $3.61 billion, respectively.
For the fourth quarter, the consensus estimate for BWA’s earnings per share has moved up 5 cents in the past 30 days. Its bottom-line estimates imply a decline of 26.2% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 12.1%.
Over the trailing four quarters, BWA surpassed earnings estimates on three occasions and missed once, the average surprise being 10.93%. This is depicted in the graph below:
In the third quarter of 2023, BWA reported adjusted earnings per share of 98 cents, up from 80 cents recorded in the prior-year quarter. The bottom line also surpassed the consensus metric of 91 cents.
The company reported net sales of $3.62 billion, missing the Zacks Consensus Estimate of $3.72 billion. The top line, however, increased 12% year over year.
Things to Note
Per S&P Global, global light vehicle production in the fourth quarter of 2023 increased 9% year over year. The increase in production is likely to have aided the demand for BorgWarner’s offerings, which might positively impact the upcoming results.
BorgWarner is likely to benefit from the soaring popularity of EVs and expects hybrid and electric technologies to be its major revenue drivers. It expects its 2023 eProduct sales in the band of $2-$2.1 billion, up from approximately $1.5 billion in 2022.
The acquisition of the charging business of SSE in China — completed in March 2023 — expanded BorgWarner's footprint beyond Europe and North America. The buyout of Eldor Corporation’s Electric Hybrid System business is expected to further enhance BorgWarner’s electric product portfolio. Soaring EV popularity and the acquisitions are likely to have bolstered BWA’s fourth-quarter results.
Here's a sneak peek at the firm’s revenues and EBIT projections for the to-be-reported quarter.
Our estimate for BorgWarner’s Air Management segment’s fourth-quarter sales is pinned at $1.91 billion, suggesting a rise from $1.81 billion reported in the year-ago quarter. EBIT from the segment is estimated at $296.9 million, indicating a decline from $320 million recorded in the year-ago quarter.
For the fourth quarter, our forecast for the Drivetrain & Battery Systems segment is pegged at $1.15 billion, suggesting a rise from the $990 million registered in the year-ago quarter. Also, the segmental EBIT estimate of $133.1 million indicates an increase from $90 million generated in the fourth quarter of 2022.
Our forecast for the ePropulsion segment is pinned at $571.9 million, suggesting a rise from the $545 million registered in the year-ago quarter. Our estimate for loss before interest and taxes is pegged at $18.8 million, down from the profit before interest and taxes of $6 million registered in the fourth quarter of 2022.
Earnings Whispers
Our proven model predicts an earnings beat for BorgWarner in the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as stated below.
Earnings ESP: BWA has an Earnings ESP of +3.25%. This is because the Most Accurate Estimate is 3 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, per our model, also have the correct elements to post an earnings beat this time.
The Zacks Consensus Estimate for ALSN’s to-be-reported quarter’s earnings and revenues is pegged at $1.42 per share and $755.14 million, respectively. Allison surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.23%.
Lucid Group, Inc. (LCID - Free Report) will release fourth-quarter 2023 results on Feb 21. The company has an Earnings ESP of +5.36% and a Zacks Rank #3.
The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss and revenues is pegged at 28 cents per share and $166.76 million, respectively. Lucid missed earnings estimates in each of the trailing four quarters, the average negative surprise being 7.70%.
LKQ Corporation (LKQ - Free Report) will release fourth-quarter 2023 results on Feb 22. The company has an Earnings ESP of +1.14% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 75 cents per share and $3.51 billion, respectively. LKQ surpassed earnings estimates in two of the trailing four quarters and missed twice, the average negative surprise being 1.36%.
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BorgWarner (BWA) to Report Q4 Earnings: What's in Store?
BorgWarner (BWA - Free Report) is slated to release fourth-quarter 2023 results on Feb 8, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 93 cents and $3.61 billion, respectively.
For the fourth quarter, the consensus estimate for BWA’s earnings per share has moved up 5 cents in the past 30 days. Its bottom-line estimates imply a decline of 26.2% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 12.1%.
Over the trailing four quarters, BWA surpassed earnings estimates on three occasions and missed once, the average surprise being 10.93%. This is depicted in the graph below:
BorgWarner Inc. Price and EPS Surprise
BorgWarner Inc. price-eps-surprise | BorgWarner Inc. Quote
Q3 Highlights
In the third quarter of 2023, BWA reported adjusted earnings per share of 98 cents, up from 80 cents recorded in the prior-year quarter. The bottom line also surpassed the consensus metric of 91 cents.
The company reported net sales of $3.62 billion, missing the Zacks Consensus Estimate of $3.72 billion. The top line, however, increased 12% year over year.
Things to Note
Per S&P Global, global light vehicle production in the fourth quarter of 2023 increased 9% year over year. The increase in production is likely to have aided the demand for BorgWarner’s offerings, which might positively impact the upcoming results.
BorgWarner is likely to benefit from the soaring popularity of EVs and expects hybrid and electric technologies to be its major revenue drivers. It expects its 2023 eProduct sales in the band of $2-$2.1 billion, up from approximately $1.5 billion in 2022.
The acquisition of the charging business of SSE in China — completed in March 2023 — expanded BorgWarner's footprint beyond Europe and North America. The buyout of Eldor Corporation’s Electric Hybrid System business is expected to further enhance BorgWarner’s electric product portfolio. Soaring EV popularity and the acquisitions are likely to have bolstered BWA’s fourth-quarter results.
Here's a sneak peek at the firm’s revenues and EBIT projections for the to-be-reported quarter.
Our estimate for BorgWarner’s Air Management segment’s fourth-quarter sales is pinned at $1.91 billion, suggesting a rise from $1.81 billion reported in the year-ago quarter. EBIT from the segment is estimated at $296.9 million, indicating a decline from $320 million recorded in the year-ago quarter.
For the fourth quarter, our forecast for the Drivetrain & Battery Systems segment is pegged at $1.15 billion, suggesting a rise from the $990 million registered in the year-ago quarter. Also, the segmental EBIT estimate of $133.1 million indicates an increase from $90 million generated in the fourth quarter of 2022.
Our forecast for the ePropulsion segment is pinned at $571.9 million, suggesting a rise from the $545 million registered in the year-ago quarter. Our estimate for loss before interest and taxes is pegged at $18.8 million, down from the profit before interest and taxes of $6 million registered in the fourth quarter of 2022.
Earnings Whispers
Our proven model predicts an earnings beat for BorgWarner in the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as stated below.
Earnings ESP: BWA has an Earnings ESP of +3.25%. This is because the Most Accurate Estimate is 3 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, per our model, also have the correct elements to post an earnings beat this time.
Allison Transmission Holdings, Inc. (ALSN - Free Report) will release fourth-quarter 2023 results on Feb 13. The company has an Earnings ESP of +3.73% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALSN’s to-be-reported quarter’s earnings and revenues is pegged at $1.42 per share and $755.14 million, respectively. Allison surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.23%.
Lucid Group, Inc. (LCID - Free Report) will release fourth-quarter 2023 results on Feb 21. The company has an Earnings ESP of +5.36% and a Zacks Rank #3.
The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss and revenues is pegged at 28 cents per share and $166.76 million, respectively. Lucid missed earnings estimates in each of the trailing four quarters, the average negative surprise being 7.70%.
LKQ Corporation (LKQ - Free Report) will release fourth-quarter 2023 results on Feb 22. The company has an Earnings ESP of +1.14% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 75 cents per share and $3.51 billion, respectively. LKQ surpassed earnings estimates in two of the trailing four quarters and missed twice, the average negative surprise being 1.36%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.