Westport Fuel Systems Inc.’s (WPRT - Free Report) third-quarter 2017 adjusted net loss from continuing operations came in at 12 cents per share, narrower than both the Zacks Consensus Estimate of a loss of 15 cents and adjusted net loss of 14 cents in third-quarter 2016.
Also, total net loss from operating activities in the quarter narrowed to $15.7 million from the net loss of $33.6 million in third-quarter 2016.
Westport Fuel Systems logged consolidated revenues of $60.8 million in the reported quarter, up 8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $50.6 million. This upside was driven by strong sales in the aftermarket business and an increase in the value of Euro compared with the U.S. dollar.
Westport Fuel Systems Inc Price, Consensus and EPS Surprise
Consolidated gross margin increased to $14.8 million (24% of sales) in the reported quarter from $8.7 million (15% of sales) recorded in the year-ago quarter. This improvement came from higher revenues and generation of operating efficiencies through post-merger synergies.
Consolidated adjusted EBITDA amounted to a negative $10.5 million compared with a negative $26.1 million in the prior-year quarter.
Automotive Business Unit recorded a 12% increase in revenues to $60 million in the quarter, primarily on the back of strong sales in the European aftermarket business.
Corporate and Technology Investments Business Unit revenues were $0.8 million in the quarter compared with $2.5 million in the year-ago period.
The CWI segment recorded a 12% rise in revenues to $75.5 million, mainly on account of an increase in units sold and growth in parts revenues.
Westport Fuel Systems had cash and cash equivalents of $50.6 million as of Sep 30, 2017, down from $60.1 million as of Dec 31, 2016.
Zacks Rank & Other Stocks to Consider
Westport Fuel Systems carries a Zacks Rank #2 (Buy). A few other top-ranked companies in the auto space include Navistar International Corporation (NAV - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and PACCAR Inc. (PCAR - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Navistar has an expected long-term growth rate of 5%. Its shares are up 41.8% in the last six months.
American Axle has an expected long-term growth rate of 8.1%. Shares of the company are up 19.6% in the last three months.
PACCAR has an expected long-term growth rate of 10%. Its shares are up 6.6% in the last three months.
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