BorgWarner (NYSE:BWA) Releases FY24 Earnings Guidance

BorgWarner (NYSE:BWA) updated its FY24 earnings guidance on Wednesday. The company provided EPS guidance of $3.95-4.15 for the period, compared to the consensus EPS estimate of $4.07. The company issued revenue guidance of $14.1-14.4 billion, compared to the consensus revenue estimate of $14.73 billion. BorgWarner also updated its FY 2024 guidance to 3.950-4.150 EPS.

BorgWarner Stock Up 6.9 %

Shares of NYSE:BWA opened at $34.68 on Wednesday. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. The stock has a fifty day simple moving average of $33.43 and a two-hundred day simple moving average of $33.45. BorgWarner has a 12-month low of $29.51 and a 12-month high of $46.75. The stock has a market capitalization of $7.90 billion, a price-to-earnings ratio of 12.29, a PEG ratio of 0.76 and a beta of 1.22.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. The company had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The firm’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the previous year, the business earned $1.09 EPS. On average, research analysts anticipate that BorgWarner will post 4.01 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 1.27%. The ex-dividend date is Tuesday, September 3rd. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

BorgWarner announced that its board has approved a share repurchase plan on Thursday, May 2nd that permits the company to buyback $500.00 million in shares. This buyback authorization permits the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently weighed in on BWA shares. Barclays increased their price objective on shares of BorgWarner from $44.00 to $45.00 and gave the stock an overweight rating in a research note on Monday, May 6th. Bank of America lowered their price objective on BorgWarner from $50.00 to $45.00 and set a buy rating on the stock in a research report on Monday, July 22nd. StockNews.com downgraded shares of BorgWarner from a buy rating to a hold rating in a report on Tuesday, July 23rd. JPMorgan Chase & Co. decreased their price objective on shares of BorgWarner from $52.00 to $50.00 and set an overweight rating on the stock in a research report on Monday, July 22nd. Finally, Robert W. Baird cut their price target on BorgWarner from $40.00 to $38.00 and set a neutral rating for the company in a research note on Friday, July 12th. Eight analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of Moderate Buy and a consensus price target of $41.29.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.