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Westport Fuel Systems (WPRT) Q1 Loss Narrower than Expected
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Westport Fuel Systems Inc.’s (WPRT - Free Report) first-quarter 2017 loss from continuing operations came in at 12 cents per share, narrower than the year-ago loss of 38 cents. Moreover, the adjusted loss was also narrower than the Zacks Consensus Estimate of a loss of 15 cents.
Total net loss amounted to $12.8 million. The reported net loss for first-quarter 2016 was $24.5 million.
Westport Fuel Systems logged revenues of $60 million in the reported quarter, up 150% year over year. The growth was primarily driven by the addition of Fuel Systems’ revenues. However, the top line missed the Zacks Consensus Estimate of $78 million.
Consolidated gross margin increased to $17.5 million (29.2% of sales) in the reported quarter from $6.4 million (26.7% of sales) recorded in the year-ago quarter. The improvement in gross margin was mainly due to the merger with Fuel Systems as well as improved operating performance.
Consolidated adjusted EBITDA amounted to a negative $4.1 million, compared with a negative $11.9 million in the prior-year quarter.
Westport Fuel Systems Inc Price, Consensus and EPS Surprise
Automotive Business Unit recorded a 142.8% increase in revenues to $56.3 million in the quarter due to lower Euro during the quarter. Gross margin increased to $13.8 million (25%) from $5.6 million (24%) in the prior-year quarter.
Corporate and Technology Investments Business Unit revenues were $3.7 million in the quarter, compared to $0.8 million in the year-ago period.
The CWI joint venture recorded an 8.7% increase in revenues to $70.7 million, mainly owing to the increase of the natural gas engine population in service. CWI operating income attributable to Westport Fuel Systems was $1.8 million in the reported quarter up from the prior-year figure of $0.5 million due to improved shipments and higher gross margins.
Financial Position
Westport Fuel Systems had cash and cash equivalents of $47.3 million as of Mar 31, 2017, down from $60.1 million as of Mar 31, 2016. Long-term debt was $78.4 million as of Mar 31, 2017, up from $65.4 million as of Mar 31, 2016.
In first-quarter 2017, Westport Fuel Systems’ cash used in operations was $16.8 million, compared with $23.1 million used in the year-ago period.
The company has not provided any guidance for revenues or earnings. It is in the final development stage of the launch of commercial components of HPDI 2.0.
Price Performance
Westport Fuel Systems has outperformed the Zacks categorized Auto/Truck Replacement Parts industry in the last three months. During this period, the company’s share rallied 14.4%, while the industry witnessed a 4.1% increase.
Zacks Rank & Key Picks
Westport Fuel Systems currently carries a Zacks Rank #3 (Hold).
Allison Transmission Holdings has an expected long-term growth of 11%.
Cummins has an expected long-term growth of 9.8%.
Dana has an expected long-term growth of 3%.
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Westport Fuel Systems (WPRT) Q1 Loss Narrower than Expected
Westport Fuel Systems Inc.’s (WPRT - Free Report) first-quarter 2017 loss from continuing operations came in at 12 cents per share, narrower than the year-ago loss of 38 cents. Moreover, the adjusted loss was also narrower than the Zacks Consensus Estimate of a loss of 15 cents.
Total net loss amounted to $12.8 million. The reported net loss for first-quarter 2016 was $24.5 million.
Westport Fuel Systems logged revenues of $60 million in the reported quarter, up 150% year over year. The growth was primarily driven by the addition of Fuel Systems’ revenues. However, the top line missed the Zacks Consensus Estimate of $78 million.
Consolidated gross margin increased to $17.5 million (29.2% of sales) in the reported quarter from $6.4 million (26.7% of sales) recorded in the year-ago quarter. The improvement in gross margin was mainly due to the merger with Fuel Systems as well as improved operating performance.
Consolidated adjusted EBITDA amounted to a negative $4.1 million, compared with a negative $11.9 million in the prior-year quarter.
Westport Fuel Systems Inc Price, Consensus and EPS Surprise
Westport Fuel Systems Inc Price, Consensus and EPS Surprise | Westport Fuel Systems Inc Quote
Segment Details
Automotive Business Unit recorded a 142.8% increase in revenues to $56.3 million in the quarter due to lower Euro during the quarter. Gross margin increased to $13.8 million (25%) from $5.6 million (24%) in the prior-year quarter.
Corporate and Technology Investments Business Unit revenues were $3.7 million in the quarter, compared to $0.8 million in the year-ago period.
The CWI joint venture recorded an 8.7% increase in revenues to $70.7 million, mainly owing to the increase of the natural gas engine population in service. CWI operating income attributable to Westport Fuel Systems was $1.8 million in the reported quarter up from the prior-year figure of $0.5 million due to improved shipments and higher gross margins.
Financial Position
Westport Fuel Systems had cash and cash equivalents of $47.3 million as of Mar 31, 2017, down from $60.1 million as of Mar 31, 2016. Long-term debt was $78.4 million as of Mar 31, 2017, up from $65.4 million as of Mar 31, 2016.
In first-quarter 2017, Westport Fuel Systems’ cash used in operations was $16.8 million, compared with $23.1 million used in the year-ago period.
The company has not provided any guidance for revenues or earnings. It is in the final development stage of the launch of commercial components of HPDI 2.0.
Price Performance
Westport Fuel Systems has outperformed the Zacks categorized Auto/Truck Replacement Parts industry in the last three months. During this period, the company’s share rallied 14.4%, while the industry witnessed a 4.1% increase.
Zacks Rank & Key Picks
Westport Fuel Systems currently carries a Zacks Rank #3 (Hold).
Some better-ranked automobile stocks include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Cummins Inc. (CMI - Free Report) and Dana Inc. (DAN - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission Holdings has an expected long-term growth of 11%.
Cummins has an expected long-term growth of 9.8%.
Dana has an expected long-term growth of 3%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>.