BorgWarner's (BWA) Q4 Earnings Surpass Estimates, Down Y/Y
Zacks Investment Research | Feb 12, 2020 09:09PM ET
BorgWarner Inc. (NYSE:BWA) delivered adjusted earnings of $1.17 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.05. This was mainly driven by the better-than-anticipated performance of the Drivetrain and Engine segments. However, the reported figure came in lower than the year-ago quarter’s $1.21 per share. Net income amounted to $220 million compared with the $230 million reported in the prior-year quarter.
BorgWarner’s net sales edged down 0.6% year over year to $2,559 million, due to the unfavorable impact of the thermostat product line divestiture and foreign-currency fluctuations. The reported figure, however, beat the Zacks Consensus Estimate of $2,533 million.
In the fourth quarter, operating income amounted to $478 million compared with the prior-year quarter’s figure of $266 million.
Segmental Performance
Net sales in the Engine segment fell to $1,533 million from the year-ago quarter’s $1,541 million. The figure, however, surpassed the Zacks Consensus Estimate of $1,480 million. Excluding impact of foreign-currency translation and divestiture of the thermostat product line, net sales went up 3.5% year over year and adjusted EBIT (earnings before interest, income taxes and non-controlling interest) climbed 8.6% to $264 million. This was primarily aided by higher revenues, excluding the impact of weaker currencies, and lower SG&A and R&D expense.
In the Drivetrain segment, net sales decreased to $1,042 million from the $1,047 million reported in the prior-year quarter. The figure, however, outpaced the Zacks Consensus Estimate of $1,041 million. Excluding impacts of foreign currencies, net sales inched up 1.5% on a year-over-year basis and adjusted EBIT rose 4.6% to $136 million owing to supplier cost savings and lower R&D costs.
BorgWarner Inc. Price, Consensus and EPS Surprise
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