BorgWarner, Inc. Second Quarter Earnings Sneak Peek

BorgWarner, Inc. (NASDAQ:BWA) will unveil its latest earnings on Thursday, July 28, 2011. BorgWarner Inc. 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 98 cents per share, a rise of 25.6% 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 $1.05. Between one and three months ago, the average estimate moved down, but has risen from 96 cents during the last month. For the year, analysts are projecting profit of $4.12 per share, a rise of 36.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of $1 per share against a mean estimate of profit of 96 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.74 billion in revenue this quarter, a rise of 22.5% from the year ago quarter. Analysts are forecasting total revenue of $7.09 billion for the year, a rise of 25.5% from last year’s revenue of $5.65 billion.

Analyst Ratings: Analysts seem relatively indifferent about BorgWarner with eight of 15 analysts surveyed maintaining a hold rating.

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 38.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 55.2% from the year earlier quarter.

Competitors to Watch: Dana Holding Corporation (NYSE:DAN), Cummins Inc. (NYSE:CMI), Enova Systems, Inc. (AMEX:ENA), Standard Motor Products, Inc. (NYSE:SMP), Federal-Mogul Corporation (NASDAQ:FDML), Westport Innovations Inc. (NASDAQ:WPRT), Lear Corporation (NYSE:LEA), and Tenneco Inc. (NYSE:TEN).

Stock Price Performance: During May 25, 2011 to July 22, 2011, the stock price had risen $6.12 (8.7%) from $70.04 to $76.16. The stock price saw one of its best stretches over the last year between February 3, 2011 and February 14, 2011 when shares rose for eight-straight days, rising 21.8% (+$14.31) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 7.2% (-$5.86) over that span. Shares are up $3.80 (+5.3%) year to date.

(Source: Xignite Financials)

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