Westport Fuel (WPRT) Q3 Earnings and Revenues Top Estimates
Westport Fuel Systems Inc. WPRT reported earnings per share of 1 cent in third-quarter 2020. Notably, the Zacks Consensus Estimate was pegged at a loss of 4 cents. However, the reported figure comes in lower than the earnings of 4 cents per share recorded in the year-ago period.
Net income from continuing operations in the reported quarter was $0.8 million, down from the $4.9 million posted in third-quarter 2019. Unfavorable impacts of COVID-19, warranty-related charges, and a one-time gain on settlement resulted in this downside.
Westport Fuel registered consolidated revenues of $65.4 million in the third quarter, down 13% year over year. The reported figure, however, surpassed the Zacks Consensus Estimate of $53 million.
During the third quarter, consolidated gross margin decreased to $10 million from the prior year’s $17.9 million on lower overall sales and contractual HPDI price reductions. Adjusted EBITDA amounted to $4 million compared with the prior-year quarter’s profit of $9.4 million.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Operational Results
Original Equipment Manufacturer Segment (OEM): Net sales of the segment climbed 3% year over year to $37.4 million in the reported quarter mainly on increase in sales volume in the HD OEM business, partially offset by the price reduction of the HPDI product. The segment’s operating loss came in at $4.9 million, much wider than the loss of $0.9 million incurred in third-quarter 2019.
Independent Aftermarket Segment (IAM): Net sales of the segment slid 11.2% year over year to $28 million in the September-end quarter on the prevailing negative impact of the pandemic and related shutdowns. The segment reported an operating income of $1.7 million, lower than the prior-year quarter’s profit of $3.9 million.
CWI Joint Venture (50%): This segment’s revenues totaled $42.2 million during the July-September period, up from the year-ago quarter’s $41.5 million. Operating income was $6.3 million, slightly down from the third-quarter 2019 level of $6.6 million primarily on dismal revenues.
Corporate Business Segment: During the reported quarter, operating profit of the segment amounted to $0.05 million, as against the operating loss of $4.3 million incurred in the year-earlier period. The segment’s depreciation and amortization expenses came in at $54,000, up from the $47,000 incurred in the prior-year quarter.
Financial Position
Westport Fuel had cash and cash equivalents of $46.3 million as of Sep 30, 2020, down from $46 million as of Dec 31, 2019. Total debt came in at $76 million as of Sep 30, 2020, compared with the $49 million as of Dec 31, 2019.
Zacks Rank & Key Picks
Westport Fuel currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the same sector include Gentex Corporation GNTX, Autoliv Inc ALV and Lear Corporation LEA, all of which sport a Zacks Rank of 1, at present.
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