BorgWarner (BWA) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

BorgWarner (BWA) reported $4.52 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 20.2%. EPS of $1.35 for the same period compares to $1.05 a year ago.

The reported revenue represents a surprise of +2.85% over the Zacks Consensus Estimate of $4.39 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +18.42%.

While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.

Here is how BorgWarner performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net sales- Air Management: $2.03 billion versus the four-analyst average estimate of $1.98 billion.

  • Net Sales- Aftermarket: $339 million versus $326.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.

  • Net sales-ePropulsion: $567 million versus $565.70 million estimated by four analysts on average.

  • Net sales- Inter-segment eliminations: -$136 million compared to the -$146.14 million average estimate based on four analysts. The reported number represents a change of +3.8% year over year.

  • Net sales- e-Propulsion & Drivetrain: $1.69 billion versus the four-analyst average estimate of $1.02 billion. The reported number represents a year-over-year change of +32.5%.

  • Segment Adjusted Operating Income- Aftermarket: $52 million compared to the $44.86 million average estimate based on four analysts.

  • Adjusted Operating Income – ePropulsion: -$19 million versus the four-analyst average estimate of -$31.31 million.

  • Adjusted Operating Income- e-Propulsion & Drivetrain: $121 million versus the four-analyst average estimate of $124.67 million.

  • Adjusted Operating Income- Air Management: $307 million versus $292.40 million estimated by four analysts on average.

View all Key Company Metrics for BorgWarner here>>>

Shares of BorgWarner have returned -6.9% over the past month versus the Zacks S&P 500 composite’s +3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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