BorgWarner Inc. Fourth Quarter Earnings Sneak Peek

BorgWarner, Inc. (NASDAQ:BWA) will unveil its latest earnings on Tuesday, February 14, 2012. BorgWarner is a global supplier of engineered automotive systems and components, mainly for powertrain applications.

BorgWarner, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.15 per share, a rise of 29.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.16. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 46% versus last year to $4.41.

Past Earnings Performance: Last quarter, the company beat estimates by 10 cents, coming in at profit of $1.15 a share versus the estimate of net income of $1.05 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 19.6% in revenue from the year-earlier quarter to $1.83 billion.

Analyst Ratings: nine out of 15 analysts surveyed (60%) have a buy rating on BorgWarner.. This is below the mean analyst rating of 10 competitors, which average 64.7% buy ratings.

A Look Back: In the third quarter, profit rose 32.7% to $141.6 million ($1.15 a share) from $106.7 million (87 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 27% to $1.79 billion from $1.41 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 29.3%, with the biggest boost coming in the first quarter when revenue rose 34.5% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 95.7% in the second quarter and 63.4% in the first quarter.

Stock Price Performance: During November 10, 2011 to February 8, 2012, the stock price had risen $9.18 (13.5%) from $67.82 to $77. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 11, 2011 when shares rose for seven-straight days, rising 23.8% (+$13.38) over that span. It saw one of its worst periods between November 15, 2011 and November 21, 2011 when shares fell for five-straight days, falling 7.3% (-$4.90) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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