BorgWarner Inc. (NYSE:BWA) is a leading manufacturer of powertrain products for major automakers. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles), as well as automatic transmission and timing chain systems.
These products are produced and sold worldwide, primarily to original equipment manufacturers.
BorgWarner is poised to benefit from strong demand, global expansion, capital deployment and restructuring of the Drivetrain segment. Moreover, the company has a healthy balance sheet and ample cash flows, which can help increase shareholder returns.
Estimate Trend & Surprise History
Meanwhile, the company has a positive record in terms of earnings surprises. BorgWarner beat earnings estimates in each of the trailing four quarters. As a result, the company posted an average positive surprise of 3.32% over the last four quarters.
Investors have been eagerly awaiting BorgWarner’s latest earnings report to see whether it delivers an earnings beat.
Zacks Rank
BorgWarner currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this Michigan-based company’s earnings announcement below:
Earnings
BorgWarner reported adjusted earnings of 96 cents per share in the second quarter of 2017, beating the Zacks Consensus Estimate of 89 cents. Adjusted earnings increased from 84 cents reported in the year-ago quarter.
BorgWarner Inc. Price and EPS Surprise
Revenues
BorgWarner logged revenues of $2.39 billion, beating the Zacks Consensus Estimate of $2.27 billion.
Key Stats/Developments to Note
For third-quarter, the company expects net earnings to be within the range of 84-87 cents per share. Moreover, it expects organic sales growth of 3-6%, in comparison to net sales of $2.1 billion, recorded in the year-ago quarter.
For 2017, the company expects net sales of around $9.28-$9.38 billion, as against the previous expectation of $8.81–$9.04 billion, which translates into organic growth rate of 6.5-7.5%.The company expects negative impact of foreign currencies due to the depreciation of the Euro, Yuan and Pound of $100 million.
Further, BorgWarner expects net earnings in the range of $3.65-$3.70 per share against the previous expectation of $3.50–$3.60 per share in 2017.
Check back later for our full write up on BorgWarner’s earnings report!
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
BorgWarner Inc. (BWA): Free Stock Analysis Report
Original post
Zacks Investment Research