Stock Monitor: Aptiv Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free earnings report on BorgWarner Inc. (NYSE: BWA), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BWA. BorgWarner reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The auto parts supplier outperformed top- and bottom-line expectations. Additionally, the Company raised its earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
BorgWarner's net sales were $2.78 billion in Q1 2018, up 15.7% from $2.41 billion in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the Company's net sales grew 6.6% on a y-o-y basis. BorgWarner's reported numbers topped analysts' estimates of $2.63 billion.
For Q1 2018, BorgWarner's net earnings totaled $225 million, or $1.07 per diluted share, compared to $189 million, or $0.89 per diluted share, in Q1 2017. The Company's net earnings in the reported quarter included non-comparable items of $0.03 per diluted share versus net non-comparable items of $0.02 per diluted share in the year earlier quarter. The impact of foreign currencies increased net earnings by approximately $0.08 per diluted share in Q1 2018.
On an adjusted basis, BorgWarner reported earnings of $1.10 per share, up 21% compared to $0.91 per share in Q1 2017 and came in ahead of Wall Street's estimates of $1.03 per share.
BorgWarner's Segment Results
During Q1 2018, the Engine segment's net sales rose 15% to $1.72 billion compared to $1.50 billion in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's net sales were up 4.9% on a y-o-y basis. In Q1 2018, Engine segment's adjusted earnings before interest, income taxes, and non-controlling interest (EBIT) were $280 million. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's adjusted EBIT was $263 million in the reported quarter, up 6.7% on a y-o-y basis.
For Q1 2018, the Drivetrain segment's net sales totaled $1.08 billion, up 15% compared to $925 million in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's net sales rose 9.2% from the prior year's same quarter. The Drivetrain segment's adjusted EBIT was $121 million in Q1 2018. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's adjusted EBIT was $117 million, up 12.4% on a y-o-y basis.
During Q1 2018, BorgWarner's net cash provided by operating activities was $35 million compared to $60 million in Q1 2017. The Company's investments in capital expenditures, including tooling outlays, totaled $160 million in the reported quarter, compared with $131 million in the prior year quarter. BorgWarner's balance sheet debt increased $137 million and cash decreased by $136 million at the end of Q1 2018 compared to the end of FY17. The Company's net debt to net capital ratio was 32.3% at the end of the reported quarter compared to 30.0% at the end of FY17.
BorgWarner is forecasting FY18 net sales to be in the range of $10.77 billion - $10.94 billion, implying organic sales growth of 5.0% to 7.0%. Foreign currencies are expected to increase sales by $405 million, while the acquisition of Sevcon is expected to increase sales by approximately $50 million. The Company is estimating net earnings to be within a range of $4.30 to $4.40, with the increase in guidance primarily due to a larger benefit from foreign exchange rates.
For Q2 2018, BorgWarner is projecting organic net sales growth of 7.0% to 9.0% compared to net sales of $2.39 billion in Q2 2017. Foreign currencies are expected to increase sales by $125 million, while acquisition of Sevcon is estimated to add sales by approximately $15 million. The Company's net earnings are expected to be within a range of $1.09 to $1.11 per diluted share, including a negative y-o-y impact of $0.02 per diluted share due to higher minority interest and lower equity income.
Stock Performance Snapshot
May 11, 2018 - At Friday's closing bell, BorgWarner's stock marginally advanced 0.26%, ending the trading session at $50.61.
Volume traded for the day: 897.80 thousand shares.
Stock performance in the past twelve-month period – up 20.99%
After last Friday's close, BorgWarner's market cap was at $10.60 billion.
Price to Earnings (P/E) ratio was at 14.24.
The stock has a dividend yield of 1.34%.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.
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