BorgWarner Inc. Third Quarter Earnings Sneak Peek

BorgWarner, Inc. (NASDAQ:BWA) will unveil its latest earnings on Friday, October 28, 2011. 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 profit of $1.05 per share, a rise of 47.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 97 cents. Between one and three months ago, the average estimate moved up. It has risen from $1.04 during the last month. For the year, analysts are projecting net income of $4.39 per share, a rise of 45.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 14 cents, coming in at profit of $1.12 a share versus the estimate of net income of 98 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.78 billion in revenue this quarter, a rise of 26.2% from the year ago quarter. Analysts are forecasting total revenue of $7.22 billion for the year, a rise of 27.8% from last year’s revenue of $5.65 billion.

Analyst Ratings: seven out of 13 analysts surveyed (53.8%) have a buy rating on BorgWarner.. This is below the mean analyst rating of 10 competitors, which average 66.2% buy ratings.

A Look Back: In the second quarter, profit rose 95.7% to $162 million ($1.31 a share) from $82.8 million (68 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 27.9% to $1.82 billion from $1.42 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 31.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 37.3% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 63.4% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

Competitors to Watch: Dana Holding Corporation (NYSE:DAN), Meritor Inc (MTOR), Cummins Inc. (NYSE:CMI), Quantum Fuel Systems Tech. (QTWWD), 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 October 18, 2011 to October 24, 2011, the stock price had risen $3.38 (4.8%) from $71.11 to $74.49. 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 October 18, 2011 and October 20, 2011 when shares fell for three-straight days, falling 2.4% (-$1.69) over that span.

(Source: Xignite Financials)

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