BorgWarner
The 10-second takeaway
For the quarter ended March 31 (Q1), BorgWarner met expectations on revenues and met expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins increased across the board.
Revenue details
BorgWarner logged revenue of $1.91 billion. The 14 analysts polled by S&P Capital IQ hoped for a top line of $1.93 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.73 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.28. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.24 for Q1 were 24% higher than the prior-year quarter's $1.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 20.7%, 90 basis points better than the prior-year quarter. Operating margin was 11.8%, 140 basis points better than the prior-year quarter. Net margin was 8.3%, 110 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $7.87 billion. The average EPS estimate is $5.49.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 370 members out of 402 rating the stock outperform, and 32 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give BorgWarner a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BorgWarner is outperform, with an average price target of $90.14.
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