BorgWarner Earnings: Here’s Why Shares are Down Now

BorgWarner Inc. (NYSE:BWA) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.18%.

BorgWarner Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.29% to $1.50 in the quarter versus EPS of $1.36 in the year-earlier quarter.

Revenue: Rose 2.03% to $1.89 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BorgWarner Inc. reported adjusted EPS income of $1.50 per share. By that measure, the company beat the mean analyst estimate of $1.41. It missed the average revenue estimate of $1.92 billion.

Quoting Management: “Outstanding performance by our operations drove our strong second quarter results,” said James Verrier, President and CEO of BorgWarner. “The focus on fuel economy and improved emissions continued to drive growth for BorgWarner around the world. Excluding the favorable impact of foreign currencies and 2012 dispositions, our net sales were up approximately 3% in the second quarter compared with second quarter 2012. Global light vehicle production was up 3% and European light vehicle production was up 1% in the same period. Operational efficiency and cost controls enabled us to post a record operating margin of 12.9% in the quarter.”

Key Stats (on next page)…

Revenue increased 2.32% from $1.85 billion in the previous quarter. EPS increased 15.38% from $1.30 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 $1.30. For the current year, the average estimate has moved up from a profit of $5.34 to a profit of $5.37 over the last ninety days.

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