BorgWarner's Quarterly Earnings Preview: What You Need to Know

Michigan-based BorgWarner Inc. (BWA) is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles. With a market cap of $8 billion, it produces and sells products such as four-wheel-drive and all-wheel-drive transfer cases, automatic transmission, and timing chain systems, primarily to OEMs of passenger cars, SUVs, trucks, and commercial transportation products. BWA is scheduled to release its fiscal 2024 Q3 earnings results on Thursday, Oct. 31.

Ahead of the event, analysts expect BorgWarner to report a profit of $0.92 per share, down 6.1% from $0.98 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one occasion.

BorgWarner’s EPS of $1.19 for the last reported quarter beat the consensus estimate by 21.4%, driven by strong demand for its exhausts, turbos, and emission control systems. 

Looking ahead, analysts expect BorgWarner to report an EPS of $4.11 in fiscal 2024, up 9.6% from $3.75 in fiscal year 2023. 

BWA stock plunged 2.3% in 2024, trailing behind the broader S&P 500 Index's ($SPX) 22.5% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 11.2% returns during the same period.

Despite its grim price action this year, BWA’s shares gained more than 8% on Jul. 31, following the release of its Q2 earnings report. The company surpassed earnings estimates but missed revenue estimates. It anticipates full-year earnings from $3.95 to $4.15 per share and revenue in the range of $14.1 billion to $14.4 billion.

The current consensus opinion on BorgWarner stock is “Moderate Buy” overall. Out of 17 analysts covering the stock, nine suggest a “Strong Buy,” one recommends a “Moderate Buy,” and the remaining seven analysts advise a “Hold.” 

The average analyst price target for BorgWarner is $41.19, indicating a potential upside of 17.6% from the current price levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.