BorgWarner (NYSE:BWA) Releases Earnings Results, Beats Estimates By $0.18 EPS

BorgWarner (NYSE:BWA) posted its quarterly earnings results on Wednesday. The auto parts company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.18, Briefing.com reports. BorgWarner had a net margin of 4.97% and a return on equity of 15.66%. The firm had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.69 billion. During the same quarter in the previous year, the firm posted $1.35 earnings per share. The company’s revenue was down 20.3% on a year-over-year basis. BorgWarner updated its FY 2024 guidance to 3.950-4.150 EPS and its FY24 guidance to $3.95-4.15 EPS.

BorgWarner Trading Down 2.9 %

NYSE BWA opened at $33.04 on Friday. BorgWarner has a 12-month low of $29.51 and a 12-month high of $42.78. The company has a fifty day simple moving average of $33.34 and a two-hundred day simple moving average of $33.47. 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 market cap of $7.53 billion, a P/E ratio of 12.52, a P/E/G ratio of 0.81 and a beta of 1.22.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Tuesday, September 3rd will be paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 1.33%. The ex-dividend date is Tuesday, September 3rd. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on BWA. Wells Fargo & Company lowered their target price on BorgWarner from $44.00 to $42.00 and set an “overweight” rating for the company in a report on Thursday. UBS Group increased their target price on shares of BorgWarner from $41.00 to $42.00 and gave the stock a “buy” rating in a report on Wednesday, July 10th. Citigroup reduced their price target on shares of BorgWarner from $41.00 to $36.00 and set a “neutral” rating for the company in a report on Friday, July 12th. Bank of America cut their price objective on shares of BorgWarner from $50.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, July 22nd. Finally, TD Cowen upped their target price on BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, May 3rd. Seven research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $41.35.

BorgWarner declared that its Board of Directors has initiated a share buyback plan on Thursday, May 2nd that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

BorgWarner Company Profile

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.