Westport (WPRT) Down 3.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Westport Innovations (WPRT). Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Westport due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Westport Incurs Narrower-Than-Anticipated Loss in Q1
Westport incurred a loss of 6 cents per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The loss, however, widened from 4 cents a share incurred in the year-ago period. Westport registered consolidated revenues of $82.2 million in the quarter, topping the Zacks Consensus Estimate of $78 million. The top line also rose from $77 million generated in the corresponding quarter of 2022. Westport generated an adjusted EBITDA of negative $4.5 million in the quarter under review, compared with negative $6.1 million recorded in the year-ago period.
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment totaled $56.3 million, up from $51.8 million in the first quarter of 2022. The increase was mainly due to the growth in sales of its delayed OEM, fuel storage, hydrogen, and electronics enterprises. However, this was partly counterbalanced by reduced sales volumes of its light-duty OEM from India. The segment reported an operating loss of $6 million, slightly narrower than a loss of $6.3 million incurred in the year-ago period. Gross margin increased by $3.1 million year over year, driven by higher sales volumes in various OEM businesses, including a better sales mix of system parts in the delayed OEM business.
Independent Aftermarket (IAM): Net sales of the segment totaled $25.9 million, compared with $24.7 million in the year-ago period. In the quarter, the gross margin rose $0.3 million to $5.2 million, representing 20% of revenues. This compares to 18% of revenue in the fourth quarter of 2022. Higher sales volumes in North America, Eastern Europe, and South America aided results. This was partially offset by decreased sales volumes in the Middle East and Africa and increased production input costs in materials, transportation and energy expenses.
Financials
Westport had cash and cash equivalents of $71.9 million as of Mar 31, 2023, down from $86.2 million at the end of 2022. Long-term debt decreased to $29.9 million at the end of first-quarter 2023 from $32.2 million on Dec 31, 2022. Net cash used in operating activities was $8.5 million in the quarter under review.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 20% due to these changes.
VGM Scores
Currently, Westport has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Westport has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Westport belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Oshkosh (OSK), has gained 10.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Oshkosh reported revenues of $2.27 billion in the last reported quarter, representing a year-over-year change of +16.6%. EPS of $1.59 for the same period compares with $0.24 a year ago.
For the current quarter, Oshkosh is expected to post earnings of $1.61 per share, indicating a change of +292.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
Oshkosh has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
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