Westport Fuel Systems' (WPRT) Q1 Earnings: What's in Store?

Westport Fuel Systems Inc. WPRT will report first-quarter 2018 results on May 11, before the market opens. In the last reported quarter, the company’s adjusted net loss from continuing operations was 12 cents per share. The Zacks Consensus Estimate for loss was 13 cents per share.

Over the past six months, shares of the company have underperformed the industry it belongs to. Over this time frame, shares of the company have declined 9.9%, whereas the industry inched up 0.8%.

Let’s see, how things are shaping up for this announcement.

Westport Fuel Systems Inc. Price and EPS Surprise

Westport Fuel Systems Inc. Price and EPS Surprise | Westport Fuel Systems Inc. Quote

Factors Influencing This Quarter

With rising demands for clean vehicles in key markets, Westport Fuel Systems is well placed. Its extensive product portfolio, global reach, stronger balance sheet, better liquidity, cost-reduction initiatives and innovations are aiding it to attain a strong position in the alternative-fuel industry.

Additionally, the company makes regular investments and acquisitions related to technologies and businesses that complement or help in the commercialization of its products. The merger of Fuel Systems with Westport  is expected to have positive effects on first-quarter 2018 results.

However, rising SG&A expenses and fluctuations in exchange rates are concerns before the company.

Earnings Whispers

Our proven model does not predict earnings beat for Westport Fuel Systems this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Earnings ESP: Westport Fuel Systems’ Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate for loss are pegged at 11 cents per share.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Westport Fuel Systems currently carries a Zacks Rank #2.

We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few stocks worth considering with the right combination of elements to outpace earnings estimates this time around:

Magna International Inc. MGA has an Earnings ESP of +4.71% and a Zacks Rank of 3. It is expected to report first-quarter 2018 results on May 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

Navistar International Corporation NAV has an Earnings ESP of +22.46% and a Zacks Rank of 3. It is expected to report second-quarter fiscal 2018 results on Jun 6.

Univar Inc. UNVR has an Earnings ESP of +2.63% and a Zacks Rank of 3. It will report first-quarter 2018 results on May 10.

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