BorgWarner (NYSE:BWA) Releases FY20 Earnings Guidance

BorgWarner (NYSE:BWA) issued an update on its FY20 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of $3.85-4.15 for the period, compared to the Thomson Reuters consensus estimate of $4.03. The company issued revenue guidance of $9750-10075 million, compared to the consensus revenue estimate of $10.12 billion.BorgWarner also updated its FY 2020
Pre-Market guidance to 3.85-4.15 EPS.

Several brokerages have recently commented on BWA. Barclays reiterated a buy rating and set a $46.00 price target on shares of BorgWarner in a research report on Sunday, November 3rd. Bank of America upgraded shares of BorgWarner from a neutral rating to a buy rating and set a $52.00 price target for the company in a research report on Wednesday, January 29th. Oppenheimer set a $47.00 price target on shares of BorgWarner and gave the stock a buy rating in a research report on Friday, November 1st. ValuEngine upgraded shares of BorgWarner from a sell rating to a hold rating in a research report on Friday, January 10th. Finally, Wolfe Research cut shares of BorgWarner from an outperform rating to a peer perform rating and lowered their price target for the stock from $50.00 to $46.00 in a research report on Friday, November 22nd. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have assigned a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $44.71.

NYSE BWA traded down $0.93 during trading on Friday, reaching $34.15. 5,008,248 shares of the stock traded hands, compared to its average volume of 3,531,080. The firm has a market cap of $7.24 billion, a price-to-earnings ratio of 9.49, a price-to-earnings-growth ratio of 1.13 and a beta of 1.91. The stock’s 50-day moving average price is $39.10 and its 200 day moving average price is $38.84. The company has a quick ratio of 1.26, a current ratio of 1.58 and a debt-to-equity ratio of 0.36. BorgWarner has a fifty-two week low of $30.71 and a fifty-two week high of $46.60.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Thursday, February 13th. The auto parts company reported $1.17 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.03 by $0.14. The firm had revenue of $2.56 billion during the quarter, compared to analysts’ expectations of $2.49 billion. BorgWarner had a net margin of 7.34% and a return on equity of 19.05%. The business’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.21 earnings per share. Analysts anticipate that BorgWarner will post 4.01 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.99%. The ex-dividend date is Friday, February 28th. BorgWarner’s dividend payout ratio is currently 16.46%.

BorgWarner declared that its Board of Directors has initiated a share buyback plan on Tuesday, January 28th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to reacquire up to 14.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

About BorgWarner

BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates in two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; eBoosters; and timing systems products, including timing chains, variable cam timing crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains.

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Earnings History and Estimates for BorgWarner (NYSE:BWA)

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