Yahoo Finance Westport (WPRT) Incurs Wider-Than-Anticipated Loss in Q4
Westport Fuel Systems Inc. WPRT incurred a loss of 81 cents per share in fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 62 cents per share. It registered consolidated revenues of $87.2 million in the quarter, beating the Zacks Consensus Estimate of $82 million. The top line also rose from $78 million generated in the corresponding quarter of 2022. The company delivered an adjusted EBITDA of negative $10 million in the quarter under review compared with negative $12.9 million recorded in the year-ago period.
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment totaled $61.2 million, up from $47.8 million in the fourth quarter of 2022. The upside was mainly due to higher sales volumes in the light-duty OEM and electronics businesses. Additionally, increased engineering service revenues from the heavy-duty OEM business aided results. The metric also surpassed our estimate of $50.8 million.
The segment reported an operating loss of $11.7 million, narrower than a loss of $12.8 million incurred in the year-ago period and our forecast of $7.4 million. Gross margin increased to $0.8 million (1% of revenue) from the year-ago period’s level of negative $0.8 million (negative 2% of revenues), driven by increased revenues.
Independent Aftermarket (IAM): Net sales of the segment totaled $26 million compared with $30.2 million in the year-ago period. The metric also missed our estimate of $30.7 million. Lower sales volumes in Africa and South America hurt revenues. The IAM segment reported an operating profit of $1.9 million, up from $0.6 million generated in the year-ago period. Our forecast for operating income was $0.3 million.
In the quarter, gross margin rose $1.8 million to $7.2 million, representing 28% of revenues. This compares to $5.4 million (18% of revenues) in the fourth quarter of 2022. A favorable sales mix, reduced costs of electronic components and high volumes sales in Europe led to the increase in margins.
Financials
Westport had cash and cash equivalents (including restricted cash) of $54.8 million as of Dec 31, 2023, down from $86.2 million at the end of 2022. Long-term debt decreased to $30.9 million at the end of fourth-quarter 2023 from $32.2 million on Dec 31, 2022.
WPRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Autoliv ALV released its fourth-quarter 2023 results on Jan 26. Its fourth-quarter 2023 adjusted earnings of $3.74 per share surpassed the Zacks Consensus Estimate of $3.25 and jumped 105% year over year. The company reported net sales of $2,751 million in the quarter, which topped the Zacks Consensus Estimate of $2,746 million and soared 18% year over year.
Autoliv had cash and cash equivalents of $498 million as of Dec 31, 2023. Long-term debt totaled $1.32 billion. It forecasts full-year 2024 organic sales growth of around 5%. The adjusted operating margin is anticipated to be approximately 10.5%. Operating cash flow is expected to be $1.2 billion in 2024.
Oshkosh Corp OSK reported fourth-quarter 2023 results on Jan 30. Its adjusted earnings of $2.56 per share topped the Zacks Consensus Estimate of $2.17. The bottom line also rose from $1.60 per share recorded in the year-ago period. In the quarter under review, consolidated net sales climbed 12% year over year to $2,466.8 million. However, the top line marginally missed the Zacks Consensus Estimate of $2,468 million.
Oshkosh had cash and cash equivalents of $125.4 million as of Dec 31, 2023. Long-term debt totaled $597.5 million. The company anticipates full-year 2024 sales to be around $10.4 billion. It expects earnings of $9.45 per share and adjusted earnings of $10.25 per share.
BorgWarner BWA unveiled fourth-quarter 2023 results on Feb 8. It reported adjusted earnings of 90 cents per share, down from $1.26 recorded in the prior-year quarter. The bottom line also missed the Zacks Consensus Estimate of 93 cents. Net sales of $3.52 billion missed the Zacks Consensus Estimate of $3.61 billion and declined 14.4% year over year.
As of Dec 31, 2023, BorgWarner had $1.53 billion in cash/cash equivalents/restricted cash. Long-term debt was $3.71 billion. For 2024, the company anticipates net sales within $14.4-$14.9 billion, up from $14.2 billion reported in 2023. The adjusted operating margin is expected in the band of 8.5-8.9%. Adjusted earnings are estimated within $3.65-$4 per share.
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
Autoliv, Inc. (ALV) : Free Stock Analysis Report
BorgWarner Inc. (BWA) : Free Stock Analysis Report
Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
