BorgWarner (NYSE:BWA) Posts Earnings Results, Beats Estimates By $0.18 EPS

BorgWarner (NYSE:BWA) posted its quarterly earnings results on Wednesday. The auto parts company reported $1.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.18, Briefing.com reports. BorgWarner had a net margin of 4.97% and a return on equity of 15.50%. The business had revenue of $3.60 billion for the quarter, compared to analysts’ expectations of $3.69 billion. During the same period in the prior year, the company posted $1.35 EPS. The business’s revenue for the quarter was down 20.3% on a year-over-year basis. BorgWarner updated its FY 2024 guidance to 3.950-4.150 EPS and its FY24 guidance to $3.95-4.15 EPS.

BorgWarner Trading Down 2.9 %

NYSE BWA traded down $0.99 during mid-day trading on Friday, hitting $33.04. The company’s stock had a trading volume of 3,296,852 shares, compared to its average volume of 2,862,120. BorgWarner has a 52-week low of $29.51 and a 52-week high of $42.78. The stock’s fifty day simple moving average is $33.34 and its two-hundred day simple moving average is $33.47. 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 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 Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Tuesday, September 3rd will be given a $0.11 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.33%. BorgWarner’s dividend payout ratio is presently 16.67%.

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

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on BWA shares. UBS Group upped their price target on shares of BorgWarner from $41.00 to $42.00 and gave the stock a “buy” rating in a research note on Wednesday, July 10th. Bank of America decreased their price objective 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. JPMorgan Chase & Co. decreased their price objective on shares of BorgWarner from $52.00 to $50.00 and set an “overweight” rating on the stock in a research report on Monday, July 22nd. Wells Fargo & Company decreased their price objective on shares of BorgWarner from $44.00 to $42.00 and set an “overweight” rating on the stock in a research report on Thursday. Finally, Robert W. Baird boosted their price objective 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 given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target 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.