Westport Innovations Earnings: Here’s Why Investors are Selling Shares Now

Westport Innovations Inc. (NASDAQ:WPRT) had a loss and missed Wall Street’s expectations, AND 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 10.57%.

Westport Innovations Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.61 in the quarter versus EPS of $-0.11 in the year-earlier quarter.

Revenue: Decreased 67.11% to $34.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Westport Innovations Inc. reported adjusted EPS loss of $0.61 per share. By that measure, the company missed the mean analyst estimate of $-0.49. It missed the average revenue estimate of $43.24 million.

Quoting Management: “Cummins Westport had a record quarter with $78.0 million in revenue, or a 38% year-over-year growth, and shipped over 2,700 engines,” said David Demers, CEO of Westport. “CWI volume in North America grew by 25% with strength in all segments but significant growth in trucking, including the launch of the Cummins Westport ISX12 G in April. Interest in this new engine continues to be strong as large fleets begin to test natural gas in their operations. This opens up opportunities for the new Westport iCE PACKTM LNG Tank System that is optimized for spark-ignited engines. With the 400HP version of the Cummins Westport ISX12 G in production this month, we expect CWI to see continued strong growth in the trucking segment.”

Key Stats (on next page)…

Revenue increased 16.14% from $30.05 million in the previous quarter. EPS increased to $-0.61 in the quarter versus EPS of $-0.57 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 loss of $0.42 to a loss $0.46. For the current year, the average estimate has moved down from a loss of $1.79 to a loss of $1.9 over the last ninety days.

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