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Westport (WPRT) Q3 Loss In Line, Sales Lag Estimates & Fall Y/Y

Westport Fuel Systems Inc. WPRT incurred a loss of 7 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate but wider than a loss of 3 cents posted in the year-ago quarter. Westport registered consolidated revenues of $71.2 million in the quarter, missing the Zacks Consensus Estimate of $76 million. The top line also declined 4% from the year-ago level of $74.3 million.

Westport generated an adjusted EBITDA of negative $4.5 million in the third quarter, deteriorating from negative $1.4 million in the year-ago period.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote

Segmental Takeaways

Original Equipment Manufacturer (OEM): Net sales of the segment totaled 44.1 million, down from $48 million in the third quarter of 2021. The segment reported an operating loss of $7.3 million, compared with a loss of $7.4 million incurred in the year-ago period.

Independent Aftermarket (IAM): Net sales of the segment totaled $27.1 million, compared with $26.3 million in the year-ago period. In the quarter, the segment incurred an operating income of $2.2 million, rising from $0.7 million in third-quarter 2021.

Corporate Business Segment: In the reported quarter, operating loss for the segment amounted to $5.8 million, widening from a loss of $1.9 million reported in the year-earlier period.

Financials

Westport had cash and cash equivalents of $86.5 million as of Sep 30, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.8 million at the end of third-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $8.59 million during the quarter under review.

WPRT carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

BorgWarner Inc. BWA: BorgWarner reported adjusted earnings of $1.24 per share for third-quarter 2022, up from 80 cents recorded in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.02 per share. The automotive equipment supplier reported net sales of $4,060 million, outpacing the Zacks Consensus Estimate of $3,977 million. The top line also moved up 18.8% year over year.

For full-year 2022, the company anticipates net sales within $15.4-$15.7 billion, indicating year-over-year growth of 12-14%. Importantly, BorgWarner envisions electric vehicle revenues of around $850 million for 2022, doubling from 2021 levels. Adjusted operating margin is expected in the band of 10-12%. Adjusted net earnings are estimated to be within $4.25-$4.45 share. Free cash flow is projected in the band of $650-$750 million.

Allison Transmission Holdings ALSN: Allison posted third-quarter earnings of $1.45 a share, which topped the Zacks Consensus Estimate of $1.31. The bottom line increased 63% on a year-over-year basis. Quarterly revenues of $710 million grew 25% from the year-ago period and crossed the consensus mark of $691 million.

Allison modified its full-year 2022 guidance. It now estimates net sales in the band of $2,690-$2,740 million compared with the prior range of $2,650-$2,750 million. Net income is now expected in the band of $490-$510 million, up from the prior estimate of $450-$500 million, and adjusted EBITDA is now estimated within $915-$945 million compared with $885-$955 million previously. Adjusted free cash flow is now estimated within $460-$480 million compared with $420-$480 million projected previously. Its net cash provided by operating activities is expected to be within $620-$650 million, compared with $590-$660 million expected previously.

Autoliv Inc. ALV: Autoliv reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million for the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.

The company forecasts full-year 2022 organic sales growth of around 15%, compared with 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.


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