BorgWarner Earnings Preview

Motley Fool Staff
Updated

Watch BorgWarner's (NYS: BWA) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, April 26. BorgWarner is a global supplier of engineered automotive systems and components, mainly for powertrain applications.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back BorgWarner as a buy. But with 56.3% of analysts rating it a buy, BorgWarner is still below the mean analyst rating of its nearest 10 competitors, which average 72.2% buys. Analysts don't like BorgWarner as much as competitor Lear overall. Eight out of 12 analysts rate Lear a buy compared to nine of 16 for BorgWarner. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $1.94 billion in revenue this quarter. That would represent a rise of 12.1% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.29 per share. Estimates range from $1.06 to $1.39.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 95.6% awarding it an "outperform" rating. The greater community is in line with the All-Stars, as 92% give it a rating of "outperform." Fools are keen on BorgWarner, though the message boards have been quiet lately with only two posts in the past 30 days. Even with a robust four out of five stars, BorgWarner's CAPS rating falls a little short of the community's upbeat outlook.


Management:
BorgWarner's profit has risen year-over-year by an average of 50.2% over the past five quarters.

Now, a look at how efficient management has been at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. BorgWarner has seen increasing gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. See how BorgWarner has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

20.3%

19.6%

19.6%

19.8%

Operating Margin

10.8%

11.1%

12.6%

10.4%

Net Margin

6.9%

7.9%

8.9%

7.2%

For all our BorgWarner-specific analysis, including earnings and beyond, add BorgWarner to My Watchlist.

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