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Why Is Westport (WPRT) Down 30.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Westport Innovations (WPRT - Free Report) . Shares have lost about 30.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Westport due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Westport Fuel Systems Inc. before we dive into how investors and analysts have reacted as of late.
Westport's Q2 Loss Meets Expectations
Westport reported a loss of 29 cents per share in the second quarter of 2025, which was in line with the Zacks Consensus Estimate. The company incurred a loss of 43 cents in the year-ago period.
WPRT registered consolidated revenues of $88.9 million, which beat the Zacks Consensus Estimate of $74 million. The top line also rose from $88.6 million generated in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $1 million compared with a loss of $2 million recorded in the year-ago period.
Segmental Takeaways
From the third quarter of 2024, Westport has started reporting its results under four segments: Cespira, Light-Duty, High-Pressure Controls and Systems, and Heavy-Duty OEM. Cespira is Westport’s HPDI joint venture with Volvo Group.
Cespira: The segment reported net sales of $12 million, which missed our estimate of $17.7 million but rose from $4.1 million reported in the corresponding quarter of 2024. It incurred an operating loss of $6.7 million in the second quarter of 2025, wider than the loss of $2 million reported in the corresponding quarter of 2024.
Light-Duty: Net sales of the segment totaled $76.4 million, which increased from $69.3 million in the second quarter of 2024 and beat our estimate of $68.3 million. This upside was mainly due to delayed OEM and OEM businesses.
Gross profit rose to $15.1 million (20% of revenues) from the year-ago period’s $14.7 million (21% of revenues), primarily due to an increase in sales to European customers and lower sales in developing regions.
High-Pressure Controls and Systems: Net sales of the segment totaled $2.9 million compared with $3.6 million in the year-ago period. A slowdown in hydrogen infrastructure development due to a slower adoption of hydrogen-powered solutions has resulted in a year-over-year decline. The figure, however, surpassed our estimate of $2.3 million.
In the reported quarter, gross profit fell to $0.1 million of revenues (3% of revenues) from $1.1 million (31% of revenues) in the year-ago period due to lower sales volume and increased material costs.
Heavy-Duty OEM: In the reported quarter, net sales of the segment fell to $9.6 million from $10.5 million in the year-ago quarter. The year-over-year decline resulted from the reduction in manufacturing support to Cespira. The metric, however, beat our estimate of $3.7 million. Gross profit totaled $0.7 million (7% of revenues), down from a gross profit $1.3 million in the second quarter of 2024.
Financials
Westport had cash and cash equivalents (including restricted cash) of $6.06 million as of June 30, 2025, down from $14.75 million as of Dec. 31, 2024. Long-term debt decreased to $0.98 million as of June 30, 2025, from $2.93 million as of Dec. 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Westport has a great Growth Score of A, a score with the same score on the momentum front. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Westport has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Westport belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, American Axle & Manufacturing (AXL - Free Report) , has gained 4.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
American Axle reported revenues of $1.54 billion in the last reported quarter, representing a year-over-year change of -5.9%. EPS of $0.21 for the same period compares with $0.19 a year ago.
For the current quarter, American Axle is expected to post earnings of $0.14 per share, indicating a change of -30% from the year-ago quarter. The Zacks Consensus Estimate has changed +14.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for American Axle. Also, the stock has a VGM Score of A.
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Why Is Westport (WPRT) Down 30.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Westport Innovations (WPRT - Free Report) . Shares have lost about 30.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Westport due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Westport Fuel Systems Inc. before we dive into how investors and analysts have reacted as of late.
Westport's Q2 Loss Meets Expectations
Westport reported a loss of 29 cents per share in the second quarter of 2025, which was in line with the Zacks Consensus Estimate. The company incurred a loss of 43 cents in the year-ago period.
WPRT registered consolidated revenues of $88.9 million, which beat the Zacks Consensus Estimate of $74 million. The top line also rose from $88.6 million generated in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $1 million compared with a loss of $2 million recorded in the year-ago period.
Segmental Takeaways
From the third quarter of 2024, Westport has started reporting its results under four segments: Cespira, Light-Duty, High-Pressure Controls and Systems, and Heavy-Duty OEM. Cespira is Westport’s HPDI joint venture with Volvo Group.
Cespira: The segment reported net sales of $12 million, which missed our estimate of $17.7 million but rose from $4.1 million reported in the corresponding quarter of 2024. It incurred an operating loss of $6.7 million in the second quarter of 2025, wider than the loss of $2 million reported in the corresponding quarter of 2024.
Light-Duty: Net sales of the segment totaled $76.4 million, which increased from $69.3 million in the second quarter of 2024 and beat our estimate of $68.3 million. This upside was mainly due to delayed OEM and OEM businesses.
Gross profit rose to $15.1 million (20% of revenues) from the year-ago period’s $14.7 million (21% of revenues), primarily due to an increase in sales to European customers and lower sales in developing regions.
High-Pressure Controls and Systems: Net sales of the segment totaled $2.9 million compared with $3.6 million in the year-ago period. A slowdown in hydrogen infrastructure development due to a slower adoption of hydrogen-powered solutions has resulted in a year-over-year decline. The figure, however, surpassed our estimate of $2.3 million.
In the reported quarter, gross profit fell to $0.1 million of revenues (3% of revenues) from $1.1 million (31% of revenues) in the year-ago period due to lower sales volume and increased material costs.
Heavy-Duty OEM: In the reported quarter, net sales of the segment fell to $9.6 million from $10.5 million in the year-ago quarter. The year-over-year decline resulted from the reduction in manufacturing support to Cespira. The metric, however, beat our estimate of $3.7 million. Gross profit totaled $0.7 million (7% of revenues), down from a gross profit $1.3 million in the second quarter of 2024.
Financials
Westport had cash and cash equivalents (including restricted cash) of $6.06 million as of June 30, 2025, down from $14.75 million as of Dec. 31, 2024. Long-term debt decreased to $0.98 million as of June 30, 2025, from $2.93 million as of Dec. 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Westport has a great Growth Score of A, a score with the same score on the momentum front. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Westport has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Westport belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, American Axle & Manufacturing (AXL - Free Report) , has gained 4.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
American Axle reported revenues of $1.54 billion in the last reported quarter, representing a year-over-year change of -5.9%. EPS of $0.21 for the same period compares with $0.19 a year ago.
For the current quarter, American Axle is expected to post earnings of $0.14 per share, indicating a change of -30% from the year-ago quarter. The Zacks Consensus Estimate has changed +14.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for American Axle. Also, the stock has a VGM Score of A.