Auto Stocks' Earnings Roster For Feb 13: BWA, DANA & More
Zacks Investment Research | Feb 11, 2020 09:42PM ET
The ‘Auto’ sector kicked off this earnings season on a somewhat weak note. So far, 50% of the S&P sector components have reported quarterly numbers. Per the Earnings ESP Filter .
As far as earnings surprises are concerned, the company surpassed the Zacks Consensus Estimate in three of the last four quarters.
However, this time around, things are not looking up for Dana, as the firm carries a Zacks Rank #3 and has an Earnings ESP of -0.11%. The Zacks Consensus Estimate for the quarter to be reported is earnings of 62 cents per share on revenues of $2 billion. The firm is set to report quarterly results before the opening bell.
Dana’s strong business backlog, contract wins, and smart buyouts like Nordresa acquisition and others are likely to have boosted the firm’s results in the quartertobe reported. However, volatility in off-highway markets and slowing economic growth in India and China are likely to have dented demand for its products. The firm is also bearing the brunt of high raw material cost and increasing SG&A expenses, which may have clipped fourth-quarter 2019 margins to some extent.
CarGurus, Inc. (NASDAQ:CARG) : CarGurus is a global online automotive marketplace thatbrings together buyers and sellers of new and used vehicles using technology, data analytics, and search algorithms. The firm delivered an earnings beat in the third quarter on better-than-expected sales from the U.S. market. As far as earnings surprises are concerned, the company surpassed the Zacks Consensus Estimate in each of the last four quarters.
However, our model indicates that the company may not be able to maintain earnings beat streak in the quarter to be reported, as it has a Zacks Rank #3 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter to be reported is earnings of 14 centsper share on revenues of $155 million. The firm is set to report quarterly results after the closing bell.
Higher market subscription revenues are expected to reflect on the upcoming results. The consensus estimate for fourth-quarter 2019 revenues from U.S. and international markets is pegged at $145 million and $10 million, indicating an uptick of 19.7% and 100%, respectively, from the prior-year period. However, higher general/administrative and sales/marketing expenses, along with soaring technology/development costs are likely to have impacted the bottom line.
BorgWarner Inc. (NYSE:BWA) : Michigan-based BorgWarner is a global leader in clean and efficient technology solutions required for combustion, hybrid and electric vehicles.The automotive equipment supplier posted better-than-expected earnings in the last reported quarter,mainly driven by revenue growth in the Drivetrain segment. As far as earnings surprises are concerned, the company surpassed estimates in each of the last fourquarters.
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Encouragingly, BorgWarner is expected to maintain its beat streak as it has the favorable combination of an Earnings ESP of +0.75% and a Zacks Rank #3.The Zacks Consensus Estimate for the quarter to be reported is earnings of $1.03 per share on revenues of $2.49 billion.The firm is scheduled to unveil quarterly results before opening bell.
Global expansion efforts, innovative product launches, strategic collaborations and strong backlog are likely to reflect on the firm’s fourth-quarter results.Notably, the Zacks Consensus Estimate for the firm’s Engine and Drivetrain segment’s EBIT is pegged at $243 million and $124 million, respectively, indicating sequential increase from the year-ago reported figures.
SPX Corporation (NYSE:SPXC) : Based in Charlotte, the global manufacturing and industrial equipment supplier is slated to report quarterly numbers after the closing bell. The firm posted better-than-expected earnings in the last reported quarter, driven by higher-than-anticipated revenues from HVAC and Engineered Solutions businesses. As far as earnings surprises are concerned, the company surpassed estimates in each of the last four quarters.
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