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Westport's (WPRT) Shares Rise 5.9% Since Q1 Earnings Miss
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Shares of Westport Fuel Systems Inc. (WPRT - Free Report) rose 5.9% since the company reported first-quarter 2024 results. It incurred a loss of 79 cents per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. It registered consolidated revenues of $77.6 million, missing the Zacks Consensus Estimate of $88 million. The top line also fell from $82.2 million generated in the corresponding quarter of 2023. The company delivered an adjusted EBITDA of negative $6.6 million compared with negative $4.5 million recorded in the year-ago period.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Original Equipment Manufacturer (OEM): Net sales of the segment totaled $49.3 million, down from $56.3 million in the first quarter of 2023. The downside was mainly due to lower sales in DOEM, fuel storage and light-duty OEM businesses. The metric also missed our estimate of $63.2 million.
The segment reported an operating loss of $8.3 million, wider than a loss of $6 million incurred in the year-ago period and our forecast of a loss of $5.6 million. Gross margin decreased to $4.5 million (9% of revenue) from the year-ago period’s level of $8.1 million (14% of revenues), primarily due to a decrease in sales volumes in DOEM, fuel storage and light- and heavy-duty OEM businesses.
Independent Aftermarket (IAM): Net sales of the segment totaled $28.3 million compared with $25.9 million in the year-ago period. The metric surpassed our estimate of $24.6 million. A rise in sales in North America, Western Europe and South America resulted in the outperformance. The IAM segment reported an operating profit of $2 million and beat our forecast of $0.5 million.
In the reported quarter, gross margin rose $2 million to $7.2 million, representing 25% of revenues. The company’s gross margin was $5.2 million (20% of revenues) in the first quarter of 2023. A favorable sales mix and high volumes sales led to an increase in margins.
Financials
Westport had cash and cash equivalents (including restricted cash) of $43.9 million as of Mar 31, 2024, down from $54.85 million at the end of 2023. Long-term debt decreased to $30.36 million at the end of first-quarter 2024 from $30.96 million as of Dec 31, 2023.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 72 cents and 67 cents, respectively, in the past 30 days.
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Westport's (WPRT) Shares Rise 5.9% Since Q1 Earnings Miss
Shares of Westport Fuel Systems Inc. (WPRT - Free Report) rose 5.9% since the company reported first-quarter 2024 results. It incurred a loss of 79 cents per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. It registered consolidated revenues of $77.6 million, missing the Zacks Consensus Estimate of $88 million. The top line also fell from $82.2 million generated in the corresponding quarter of 2023. The company delivered an adjusted EBITDA of negative $6.6 million compared with negative $4.5 million recorded in the year-ago period.
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 totaled $49.3 million, down from $56.3 million in the first quarter of 2023. The downside was mainly due to lower sales in DOEM, fuel storage and light-duty OEM businesses. The metric also missed our estimate of $63.2 million.
The segment reported an operating loss of $8.3 million, wider than a loss of $6 million incurred in the year-ago period and our forecast of a loss of $5.6 million. Gross margin decreased to $4.5 million (9% of revenue) from the year-ago period’s level of $8.1 million (14% of revenues), primarily due to a decrease in sales volumes in DOEM, fuel storage and light- and heavy-duty OEM businesses.
Independent Aftermarket (IAM): Net sales of the segment totaled $28.3 million compared with $25.9 million in the year-ago period. The metric surpassed our estimate of $24.6 million. A rise in sales in North America, Western Europe and South America resulted in the outperformance. The IAM segment reported an operating profit of $2 million and beat our forecast of $0.5 million.
In the reported quarter, gross margin rose $2 million to $7.2 million, representing 25% of revenues. The company’s gross margin was $5.2 million (20% of revenues) in the first quarter of 2023. A favorable sales mix and high volumes sales led to an increase in margins.
Financials
Westport had cash and cash equivalents (including restricted cash) of $43.9 million as of Mar 31, 2024, down from $54.85 million at the end of 2023. Long-term debt decreased to $30.36 million at the end of first-quarter 2024 from $30.96 million as of Dec 31, 2023.
Zacks Rank & Key Picks
WPRT currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 72 cents and 67 cents, respectively, in the past 30 days.