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Why Westport Fuel Systems Stock Dropped 14%

By Rich Smith – Updated Apr 26, 2019 at 9:59AM

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The CFO has just resigned.

What happened

Westport Fuel Systems (WPRT -1.00%) shareholders, who've watched their stock lose 45% of its value over the past year, got even more bad news today: Chief Financial Officer Michael Willis has resigned, and Westport doesn't have a ready replacement.

Westport Fuel Systems stock closed with a 13.7% loss in response to the news.

Man clearing out desk and taking the potted plant

Wesport's CFO is cleaning out his desk. Image source: Getty Images.

So what

Westport, which develops technology for trucks to run on natural gas, last reported earnings nearly three months ago, when it lost $0.02 per share on $65.5 million in sales. That means that Westport's next earnings report, for fiscal Q4, should be coming out any day now. For the CFO to resign before earnings suggests this next batch of earnings news won't be good.

At least that seems to be how investors are interpreting today's announcement.

Now what

Westport says it has "commenced a search process to identify a permanent replacement and will name a new Chief Financial Officer in due course," which suggests today's resignation was not planned out ahead of time. While the company seeks its next CFO, VP and Corporate Controller Jim MacCallum will serve as acting CFO.

Looks like he'll have his work cut out for him.

Check out the latest earnings call transcripts for companies we cover.

 

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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