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S&P 500 (NYSE:SPY) component BorgWarner Inc. (NYSE:BWA) will unveil its latest earnings on Thursday, July 26, 2012. BorgWarner is a global supplier of engineered automotive systems and components, mainly for powertrain applications.
BorgWarner Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.37 per share, a rise of 22.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.40. Between one and three months ago, the average estimate moved down. It also has dropped from $1.38 during the last month. For the year, analysts are projecting net income of $5.36 per share, a rise of 20.4% from last year.
Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of $1.28 per share versus a mean estimate of net income of $1.29 per share. In the fourth quarter of the last fiscal year, the company beat estimates by 3 cents.
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A Look Back: In the first quarter, profit rose 26.9% to $158 million ($1.28 a share) from $124.5 million ($1 a share) the year earlier, but fell short analyst expectations. Revenue rose 10.5% to $1.91 billion from $1.73 billion.
Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $18.52 (-22.4%), from $82.51 to $63.99. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 11, 2011, when shares rose for seven straight days, increasing 23.8% (+$13.38) over that span. It saw one of its worst periods between September 15, 2011 and September 26, 2011 when shares fell for eight straight days, dropping 14.9% (-$10.38) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 8.2% in revenue from the year-earlier quarter to $1.97 billion.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 20.3% over the last four quarters.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 32.7% in the third quarter of the last fiscal year and 9.2% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: There are nine out of 17 analysts surveyed (52.9%) rating BorgWarner a buy.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.28 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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