Time New York: Thu 17 Jan 14:57 pm  |  Save 15% on H&R Block Online


BorgWarner’s (BWA) Q4 Earnings Surpass Estimates, Up Y/Y


BorgWarner Inc. BWA reported adjusted earnings of $1.07 per share in fourth-quarter 2017, beating the Zacks Consensus Estimate of $1.02. Adjusted earnings increased from 85 cents per share in the year-ago quarter.

BorgWarner logged revenues of $2.59 billion, surpassing the Zacks Consensus Estimate of $2.50 billion. The figure was $2.26 billion in fourth-quarter 2016.

In 2017, adjusted earnings were $3.89 per share, up from $3.27 in previous year. Also, revenues came in at $9.80 billion, higher than $9.1 billion in 2016.

While operating income amounted to $209 million, operating loss in fourth-quarter 2016 was $458 million.

Net loss in the reported quarter came in at $146.2 million compared with $293.3 million in fourth-quarter 2016.

Segment Details

Revenues from the Engine segment increased to $1.58 billion from $1.39 billion in the prior-year quarter. Excluding the impact of foreign currencies, net sales rose 8.4% at the segment.

At the Drivetrain segment, revenues were up $1.02 billion in the fourth quarter from $883.2 million in the prior-year quarter. Excluding the impact of foreign currencies and the net impact of M&A, net sales rallied 13.1% year over year.

Financial Position

BorgWarner had $545.3 million in cash as of Dec 31, 2017 compared with $443.7 million as of Dec 31, 2016. As of Dec 31, 2017, long-term debt increased to $2.10 billion from $2.04 billion as of Dec 31, 2016.

In 2017, net cash provided by operating activities was up to $1.18 billion from $1.04 billion in the previous year. In 2017, capital expenditures, including tooling outlays, increased to $560 million from $500.6 million in 2016.


For first-quarter 2018, the company envisions net earnings to lie within the range of 99 cents to $1.31 per share. Moreover, it expects net organic sales growth of 3-5.5% compared with net sales of $2.41 billion in the year-ago quarter.

For the current year, the company reaffirmed organic growth guidance and projects net sales of around $10.52-$10.69 billion, which translates into organic growth rate of 5-7%.

Furthermore, BorgWarner expects positive impact of foreign currencies on the appreciation of the Euro and Chinese Yuan of $170 million.

Additionally, this Zacks Rank #3 (Hold) company expects net earnings in the range of $4.25-$4.35 per share.

Some better-ranked stocks in the auto space are Volkswagen A.G. VLKAY, Oshkosh Corp. OSK and Daimler A.G. DDAIF. While Volkswagen sports a Zacks Rank #1 (Strong Buy), Oshkosh and Daimler carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Volkswagen has an expected long-term growth rate of 18.7%. The stock has gained 5.4% in the last three months.

Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company were up 13.3% in the last six months.

Daimler has an expected long-term growth rate of 2.9%. In the last six months, shares of the company have rallied 17.6%.

BorgWarner Inc. Price, Consensus and EPS Surprise

BorgWarner Inc. Price, Consensus and EPS Surprise | BorgWarner Inc. Quote

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.