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Westport Fuel Systems (WPRT) Q3 Earnings: A Beat in Store?

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Westport Fuel Systems Inc. (WPRT - Free Report) will report third-quarter 2017 results on Nov 14, after the market closes. Last quarter, the company surpassed the Zacks Consensus Estimate by 20%.

The company has an impressive earnings history. It has surpassed the consensus mark in three of the trailing four quarters and lagged the same on one occasion. The average positive surprise in the trailing 12 months came in at 4.78%.

Let’s see, how things are shaping up for this announcement.

 

Westport Fuel Systems Inc Price and EPS Surprise

 

Why a Likely Positive Surprise?

Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients.

Zacks ESP: Westport Fuel Systems has an Earnings ESP of +25.68% as the Most Accurate estimate is pegged at a loss of 11 cents while the Zacks Consensus Estimate stands at a loss of 15 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Westport Fuel Systems carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of an earnings beat.

We caution against all Sell-rated stocks with a (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

What’s Driving Better-than-Expected Results?

Westport Fuel Systems regularly launches new products to boost sales. Currently, it is in process to launch commercial components of HPDI 2.0. Earlier in the first quarter of 2017, the company launched the V90 Bi-Fuel, an advanced natural gas technology.

Additionally, the company makes regular investments and acquisitions related to technologies and businesses that complement or help in commercialization of its products. The merger of Fuel Systems with Westport Fuel Systems is expected to result in savings and synergies of over $30 million annually, from 2018 onward.

The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network.

Price Performance

Last three months, shares of Westport Fuel Systems have outperformed the industry it belongs to. The stock has surged 62.8% compared with the industry’s 9.5% growth.

 



 

Other Stocks to Consider

Here are a few other companies worth considering from the same space with  the right combination of elements to exceed expectations this quarter:

Meritor Inc. has an Earnings ESP of +4.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Navistar International Corporation has an Earnings ESP of +24.09% and a Zacks Rank of 1.

Deere & Company (DE - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank of 2.

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