Why Is Westport (WPRT) Down 3.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Westport Innovations (WPRT). Shares have lost about 3.8% 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 the most recent earnings report in order to get a better handle on the important drivers.
Westport Incurs Wider-Than-Anticipated Loss in Q4
Westport incurred a loss of 10 cents per share in fourth-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 6 cents. The company had posted an EPS of 4 cents for the year-ago period. Westport registered consolidated revenues of $78 million in the quarter, topping the Zacks Consensus Estimate of $75 million. The top line, however, declined from $82.7 million generated in the corresponding quarter of 2021. Westport generated an adjusted EBITDA of negative $12.9 million in the quarter under review, down from $10 million recorded in the year-ago period.
Segmental Takeaways
Original Equipment Manufacturer (OEM): Net sales of the segment totaled $47.8 million, down from $57.4 million in the fourth quarter of 2021. The segment reported an operating loss of $12.8 million, wider than a loss of $5 million incurred in the year-ago period.
Independent Aftermarket (IAM): Net sales of the segment totaled $30.2 million, compared with $25.3 million in the year-ago period. In the quarter, the segment registered an operating income of $0.6 million, turning around from a loss of $1.3 million in fourth-quarter 2021.
Corporate Business Segment: In the reported quarter, operating loss for the segment amounted to $5 million, widening from a loss of $3.7 million reported in the year-earlier period.
Financials
Westport had cash and cash equivalents of $86.18 million as of Dec 31, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.2 million at the end of fourth-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $31.5 million in 2022.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
The consensus estimate has shifted -7.14% due to these changes.
VGM Scores
At this time, Westport has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Westport has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
