Westport (WPRT) Q1 Loss Narrower Than Expected but Wider Y/Y

Westport Fuel Systems Inc. WPRT incurred a loss of 6 cents per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The loss, however, widened from 4 cents a share incurred in the year-ago period. Westport registered consolidated revenues of $82.2 million in the quarter, topping the Zacks Consensus Estimate of $78 million. The top line also rose from $77 million generated in the corresponding quarter of 2022. Westport generated an adjusted EBITDA of negative $4.5 million in the quarter under review, compared with negative $6.1 million recorded in the year-ago period.

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 $56.3 million, up from $51.8 million in the first quarter of 2022. The increase was mainly due to growth in sales of its delayed OEM, fuel storage, hydrogen, and electronics enterprises. However, this was partly counterbalanced by reduced sales volumes of its light-duty OEM from India. The segment reported an operating loss of $6 million, slightly narrower than a loss of $6.3 million incurred in the year-ago period. Gross margin increased by $3.1 million year over year, driven by higher sales volumes in various OEM businesses, including a better sales mix of system parts in the delayed OEM business.

Independent Aftermarket (IAM): Net sales of the segment totaled $25.9 million, compared with $24.7 million in the year-ago period. In the quarter, the gross margin rose $0.3 million to $5.2 million, representing 20% of revenues. This compares to 18% of revenue in the fourth quarter of 2022. Higher sales volumes in North America, Eastern Europe, and South America aided results. This was partially offset by decreased sales volumes in the Middle East and Africa and increased production input costs in materials, transportation and energy expenses.

Financials

Westport had cash and cash equivalents of $71.9 million as of Mar 31, 2023, down from $86.2 million at the end of 2022. Long-term debt decreased to $29.9 million at the end of first-quarter 2023 from $32.2 million on Dec 31, 2022. Net cash used in operating activities was $8.5 million in 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

Autoliv ALV reported first-quarter 2023 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 87 cents. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The bottom line also shot up 99% on a year-over-year basis. The company reported net sales of $2,493 million in the quarter, which topped the Zacks Consensus Estimate of $2,283 million and soared 17% year over year. Organic sales rose 21% year over year and breezed past the consensus mark of 6.27%.

Autoliv had cash and cash equivalents of $713 million as of Mar 31, 2023, down 24% year over year. Long-term debt totaled $1601 million, increasing from $1,054 million as of Dec 31, 2022. The company forecasts full-year 2023 organic sales growth of around 15%.

Lear Corp. LEA reported first-quarter 2023 adjusted earnings of $2.78 per share, which surged from $1.80 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.55 per share. Higher-than-expected contribution from the Seating segment led to the outperformance. In the reported quarter, revenues increased 12% year over year to $5,845.5 million. The top line also beat the Zacks Consensus Estimate of $5,505 million.

The company had $898.5 million in cash and cash equivalents at the quarter’s end versus $1,114.9 million recorded as of Dec 31, 2022. Lear had long-term debt of $2,591.6 million at quarter end compared with a debt of $2,591.2 million as of 2022-end.

Allison Transmission ALSN posted first-quarter 2023 earnings of $1.85 a share, up 42% year over year and topped the Zacks Consensus Estimate of $1.52 owing to higher-than-anticipated sales from North America On-Highway, North America Off-Highway and Service Parts, Support Equipment & Other end markets. Quarterly revenues of $741 million grew 9% from the year-ago period and crossed the consensus mark of $715 million.

Allison had cash and cash equivalents of $344 million on Mar 31, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,500 million compared with $2,501 million as of Dec 31, 2022. During the first quarter, the company hiked its quarterly dividend by 10% to 23 cents/ share and repurchased 1% of outstanding shares.

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