Auto Stock Roundup: BWA, AXL, GPC, CTB & AAP Beat On Earnings
Zacks Investment Research | Feb 20, 2019 08:47PM ET
Some companies from the Auto sector — including BorgWarner Inc. (NYSE:BWA) , American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) , Genuine Parts Company (NYSE:GPC) , Cooper Tire & Rubber Co. (NYSE:CTB) , and Advance Auto Parts, Inc. (NYSE:AAP) — have reported quarterly results in the past week. During the quarter under review, earnings of all these companies surpassed the Zacks Consensus Estimate. Further, revenues of BorgWarner and American Axle beat the Zacks Consensus Estimate while the same for Genuine Parts and Advance Auto Parts were in line. However, Cooper Tire’s revenues missed estimates.
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1. BorgWarner delivered adjusted earnings of $1.21 per share in fourth-quarter 2018, beating the Zacks Consensus Estimate of $1.07. The figure also increased from $1.07 per share recorded in the year-ago quarter. Net earnings were $230 million against net loss of $146.2 million in the prior-year quarter.
BorgWarner’s net sales declined 0.5% year over year to $2.57 billion, beating the Zacks Consensus Estimate of $2.56 billion. Net sales decreased roughly $65 million, owing to foreign currency fluctuation.
In the reported quarter, operating income amounted to $266 million compared with the prior-year figure of $208 million.
In 2018, the company’s net earnings increased to $931 million or $4.44 per share from $440 million or $2.08 per share in 2017.
Net sales for 2018 went up 7.5% year over year to $10.5 billion.
Net sales from the Engine segment decreased to $1.54 billion from $1.58 billion in the prior-year quarter. Excluding impacts of foreign currencies, the segment’s net sales rose 0.4% year over year and adjusted EBIT (earnings before interest, income taxes and non-controlling interest) declined 5.9% to $243 million.
At the Drivetrain segment, net sales increased to $1.05 billion in the fourth quarter from $1.02 billion in the prior-year quarter. Excluding impacts of foreign currencies, net sales improved 4.4% on a year-over-year basis and adjusted EBIT increased 7.4% to $133 million.
As of Dec 31, 2018, BorgWarner had $739.4 million in cash compared with $545.3 million as of Dec 31, 2017. Long-term debt was $1.9 billion, decreasing from $2.1 billion recorded at the end of 2017.
At the end of 2018, net cash provided by operating activities was $1.13 billion compared with $1.18 billion in the prior year. During the year, capital expenditure, including tooling outlays, decreased to $546.6 million from $560 million in 2017. (Read more: Zacks Investment Research
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