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Why Is Westport (WPRT) Up 66.5% Since Last Earnings Report?

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A month has gone by since the last earnings report for Westport Innovations (WPRT - Free Report) . Shares have added about 66.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Westport due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Westport Fuel Q1 Earnings & Revenues Beat Estimates

Westport Fuel’s first-quarter 2019 net loss from continuing operations was 2 cents per share, narrower than the Zacks Consensus Estimate loss of 5 cents. Net loss per share from continuing operations was 10 cents in first-quarter 2018.

Net loss from continuing operations in the reported quarter was $3 million compared with $12.6 million in first-quarter 2018.

Westport Fuel logged consolidated revenues of $73.2 million in the reported quarter, up 15% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $67 million. This upside was driven by increased aftermarket revenue generation and Westport HPDI 2.0 shipments.

During the quarter under review, consolidated gross margin increased to $17.2 million from $14.6 million in the year-ago quarter. This increase was due to higher revenues.

Adjusted EBITDA was $7.3 million in the reported quarter against negative $3.4 million in the prior-year quarter.

In the reported quarter, CWI revenues rose $40.1 million to $92.3 million.

Financial Position

Westport Fuel had cash and cash equivalents of $46 million as of Mar 31, 2019, down from $61.1 million as of Dec 31, 2018.

At the end of first-quarter 2019, net cash flow used for operating activities in continuing operations was $15.2 million in comparison with the prior year’s $12.9 million.

Guidance

For 2019, the company projects consolidated revenues from continuing operations of $265-$295 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 55.56% due to these changes.

VGM Scores

At this time, Westport has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Westport has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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