Westport (WPRT) Q2 Loss In Line With Estimates, Sales Rise Y/Y
Westport Fuel Systems Inc. WPRT incurred a loss of 60 cents per share in second-quarter 2023, in line with the Zacks Consensus Estimate. The loss narrowed from 70 cents per share incurred in the year-ago period.
Westport registered consolidated revenues of $85.02 million in the quarter, topping the Zacks Consensus Estimate of $85 million. The top line also rose from $80 million generated in the corresponding quarter of 2022.
The company delivered an adjusted EBITDA of negative $4 million in the quarter under review compared with negative $4.3 million recorded in the year-ago period.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment totaled $52.4 million, down from $54.3 million in the second quarter of 2022. The decline was mainly due to lower sales to Indian customers in the light-duty OEM business and lower sales volumes in the hydrogen and heavy-duty OEM businesses. However, the metric surpassed our estimate of $50.9 million.
The segment reported an operating loss of $7.3 million, wider than $5.6 million incurred in the year-ago period. Gross margin increased to $8.4 million year over year, driven by increased sales volumes in delayed OEM and fuel storage businesses, higher spare parts sales, higher unit pricing on HPDI system sales and higher engineering service revenues.
Independent Aftermarket (IAM): Net sales of the segment totaled $32.6 million compared with $25.7 million in the year-ago period. The metric missed our estimate of $33.5 million. In the quarter, the gross margin rose $0.2 million to $6 million, representing 18% of revenues. This compares to $5.8 million in the second quarter of 2022. Higher sales volumes in South America aided results.
Financials
Westport had cash and cash equivalents of $52.3 million as of Jun 30, 2023, down from $86.2 million at the end of 2022. Long-term debt decreased to $26.9 million at the end of second-quarter 2023 from $32.2 million on Dec 31, 2022. Net cash used in operating activities was $41 million in the quarter under review.
Zacks Rank & Key Picks
WPRT currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space include Oshkosh Corporation OSK, Toyota Motor Corporation TM and PACCAR Inc. PCAR, each sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 17.1% and 111%, respectively. The EPS estimate for 2023 has moved north by 84 cents in the past seven days. The 2024 EPS estimate has moved up by 73 cents in the past seven days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.9% and 61.7%, respectively. The EPS estimate for 2023 has increased by $1.16 in the past 30 days. The 2024 EPS estimate has moved up by $1.98 in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 22.3% and 40.1%, respectively. The EPS estimate for 2023 has moved up by 71 cents in the past 30 days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
