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BorgWarner's (BWA) Q1 Earnings & Sales Beat Estimates

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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. Moreover, the company has a healthy balance sheet and ample cash flows, which can help increase shareholder returns.

Estimate Trend & Surprise History

Investors should note that the first-quarter earnings estimates for BorgWarner have increased 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 1.55% over the last four quarters.

BorgWarner Inc. Price and EPS Surprise

 

BorgWarner Inc. Price and EPS Surprise | BorgWarner 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 #2 (Buy). 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 91 cents per share in the first quarter of 2017, beating the Zacks Consensus Estimate of 84 cents. Adjusted earnings increased from 80 cents reported in the year-ago quarter.

Revenues

BorgWarner logged revenues of $2,407 million, beating the Zacks Consensus Estimate of $2,250 million. Moreover, revenues were 6.1% higher than a year-ago.

Key Stats/Developments to Note

For 2017, the company expects net sales of around $8.81–$9.04 billion, which translates into organic growth rate of 3.5–6%. The company expects negative impact of foreign currencies due to the depreciation of the Euro, Yuan and Pound of $310 million.  

Further, BorgWarner expects net earnings in the range of $3.50–$3.60 per share in 2017.

Market Reaction

BorgWarner’s shares were up 3.26% 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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