BorgWarner (NYSE:BWA) Issues FY24 Earnings Guidance

BorgWarner (NYSE:BWA) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided EPS guidance of $3.95-4.15 for the period, compared to the consensus EPS estimate of $4.07. The company issued revenue guidance of $14.1-14.4 billion, compared to the consensus revenue estimate of $14.73 billion. BorgWarner also updated its FY 2024 guidance to 3.950-4.150 EPS.

BorgWarner Stock Down 2.9 %

Shares of BWA traded down $0.99 during trading hours on Friday, hitting $33.04. The stock had a trading volume of 3,296,852 shares, compared to its average volume of 2,862,120. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.62 and a quick ratio of 1.20. The firm has a 50 day simple moving average of $33.34 and a 200-day simple moving average of $33.47. The firm has a market capitalization of $7.53 billion, a P/E ratio of 12.52, a price-to-earnings-growth ratio of 0.78 and a beta of 1.22. BorgWarner has a 1-year low of $29.51 and a 1-year high of $42.78.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Wednesday, July 31st. The auto parts company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.18. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.69 billion. BorgWarner had a return on equity of 15.50% and a net margin of 4.97%. The company’s quarterly revenue was down 20.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.35 EPS. Sell-side analysts predict that BorgWarner will post 4.06 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be paid a dividend of $0.11 per share. The ex-dividend date is Tuesday, September 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.33%. BorgWarner’s dividend payout ratio (DPR) is currently 16.67%.

BorgWarner declared that its board has initiated a share repurchase plan on Thursday, May 2nd that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the auto parts company to buy up to 6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

BWA has been the subject of a number of analyst reports. Barclays lifted their price target on BorgWarner from $45.00 to $47.00 and gave the company an overweight rating in a research note on Thursday. Citigroup dropped their target price on shares of BorgWarner from $41.00 to $36.00 and set a neutral rating on the stock in a research report on Friday, July 12th. TD Cowen lifted their target price on shares of BorgWarner from $36.00 to $40.00 and gave the stock a buy rating in a research report on Friday, May 3rd. Bank of America dropped their target price on shares of BorgWarner from $50.00 to $45.00 and set a buy rating on the stock in a research report on Monday, July 22nd. Finally, Robert W. Baird lifted their target price on shares of BorgWarner from $38.00 to $39.00 and gave the stock a neutral rating in a research report on Thursday. Seven analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of Moderate Buy and a consensus target price of $41.35.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.