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BorgWarner, Inc. (BWA - Free Report) is a leading manufacturer of powertrain products for major automakers. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles), as well as automatic transmission and timing chain systems. These products are produced and sold worldwide, primarily to original equipment manufacturers.
BorgWarner is poised to benefit from strong demand, global expansion, capital deployment and restructuring of the Drivetrain segment. However, negative impact from foreign currencies, pricing pressure from original equipment manufacturers (OEMs) and intensifying competition are some concerns.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimates for BorgWarner have remained stable over the past 30 days.
Meanwhile, the company has a positive record in terms of earnings surprises. BorgWarner beat earnings estimates in each of the trailing four quarters. As a result, the company posted an average positive surprise of 2.68% over the last four quarters.
We have highlighted some of the key stats from this Michigan-based company’s earnings announcement below:
Earnings
BorgWarner reported adjusted earnings of 78 cents per share in the third quarter of 2016, marginally beating the Zacks Consensus Estimate of 77 cents. Adjusted earnings increased from 73 cents reported in the year-ago quarter.
Revenues
BorgWarner logged revenues of $2.21 billion, surpassing the Zacks Consensus Estimate of $2.19 billion. Further, revenues were 17.5% higher than a year-ago.
Key Stats/Developments to Note
Net sales for 2016 are projected to grow 15.2%–16.0%, compared to the prior range of 13.5%–17.5%. Excluding the impact of foreign currencies and the Remy International acquisition, net sales are expected to grow around 4.3%–4.8%.
Further, BorgWarner expects net earnings in the range of $3.24–$3.28 per share in 2016, compared to the prior range of $3.16–$3.32. The Remy International acquisition is likely to have a positive impact of 12 cents per share.
Market Reaction
BorgWarner’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on BorgWarner’s earnings report!
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BorgWarner's (BWA) Q3 Earnings Beat Estimates, Rise Y/Y
BorgWarner, Inc. (BWA - Free Report) is a leading manufacturer of powertrain products for major automakers. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles), as well as automatic transmission and timing chain systems. These products are produced and sold worldwide, primarily to original equipment manufacturers.
BorgWarner is poised to benefit from strong demand, global expansion, capital deployment and restructuring of the Drivetrain segment. However, negative impact from foreign currencies, pricing pressure from original equipment manufacturers (OEMs) and intensifying competition are some concerns.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimates for BorgWarner have remained stable over the past 30 days.
Meanwhile, the company has a positive record in terms of earnings surprises. BorgWarner beat earnings estimates in each of the trailing four quarters. As a result, the company posted an average positive surprise of 2.68% over the last four quarters.
BORG WARNER INC Price and EPS Surprise
BORG WARNER INC Price and EPS Surprise | BORG WARNER INC Quote
Investors have been eagerly awaiting BorgWarner’s latest earnings report to see whether it delivers an earnings beat.
Zacks Rank
BorgWarner currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this Michigan-based company’s earnings announcement below:
Earnings
BorgWarner reported adjusted earnings of 78 cents per share in the third quarter of 2016, marginally beating the Zacks Consensus Estimate of 77 cents. Adjusted earnings increased from 73 cents reported in the year-ago quarter.
Revenues
BorgWarner logged revenues of $2.21 billion, surpassing the Zacks Consensus Estimate of $2.19 billion. Further, revenues were 17.5% higher than a year-ago.
Key Stats/Developments to Note
Net sales for 2016 are projected to grow 15.2%–16.0%, compared to the prior range of 13.5%–17.5%. Excluding the impact of foreign currencies and the Remy International acquisition, net sales are expected to grow around 4.3%–4.8%.
Further, BorgWarner expects net earnings in the range of $3.24–$3.28 per share in 2016, compared to the prior range of $3.16–$3.32. The Remy International acquisition is likely to have a positive impact of 12 cents per share.
Market Reaction
BorgWarner’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on BorgWarner’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>