BorgWarner Earnings: Everything You Must Know Now

BorgWarner Inc. (NYSE:BWA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

BorgWarner Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.52% to $1.16 in the quarter versus EPS of $1.19 in the year-earlier quarter.

Revenue: Decreased 3.08% to $1.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BorgWarner Inc. reported adjusted EPS income of $1.16 per share. By that measure, the company beat the mean analyst estimate of $1.13. It beat the average revenue estimate of $1.7 billion.

Quoting Management: “In 2012, our sales, earnings and operating income margin set all-time records on a comparable basis. In 2013, we expect reported sales growth of 2% to 6% compared with 2012, or sales growth of 3% to 7% excluding the impact of 2012 dispositions, earnings of $5.15 to $5.45 per diluted share and an operating income margin of 11.5% or better. We anticipate that this will continue our record financial pace despite difficult market conditions in Europe,” said Verrier.

Key Stats (on next page)…

Revenue increased 1.4% from $1.7 billion in the previous quarter. EPS decreased 2.52% from $1.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.31 to a profit $1.24. For the current year, the average estimate is a profit of $4.96, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)