BorgWarner (NYSE:BWA) Releases FY24 Earnings Guidance

BorgWarner (NYSE:BWA) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of $3.95-4.15 for the period, compared to the consensus estimate of $4.07. The company issued revenue guidance of $14.1-14.4 billion, compared to the consensus revenue estimate of $14.73 billion. BorgWarner also updated its FY 2024 guidance to 3.950-4.150 EPS.

BorgWarner Stock Down 2.9 %

NYSE BWA traded down $0.99 during trading on Friday, reaching $33.04. 3,296,852 shares of the company’s stock traded hands, compared to its average volume of 2,862,120. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.62 and a quick ratio of 1.20. The firm has a market cap of $7.53 billion, a price-to-earnings ratio of 12.52, a price-to-earnings-growth ratio of 0.78 and a beta of 1.22. The company’s 50 day simple moving average is $33.34 and its two-hundred day simple moving average is $33.47. BorgWarner has a 12-month low of $29.51 and a 12-month high of $42.78.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, July 31st. The auto parts company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.18. BorgWarner had a net margin of 4.97% and a return on equity of 15.50%. The business had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.69 billion. During the same quarter last year, the firm posted $1.35 EPS. The company’s revenue for the quarter was down 20.3% on a year-over-year basis. As a group, sell-side analysts forecast that BorgWarner will post 4.06 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Stockholders of record on Tuesday, September 3rd will be issued a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.33%. The ex-dividend date of this dividend is Tuesday, September 3rd. BorgWarner’s dividend payout ratio is currently 16.67%.

BorgWarner announced that its board has authorized a share repurchase plan on Thursday, May 2nd that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts recently commented on the stock. Barclays lifted their target price on shares of BorgWarner from $45.00 to $47.00 and gave the stock an overweight rating in a research note on Thursday. Oppenheimer lifted their target price on shares of BorgWarner from $39.00 to $40.00 and gave the stock an outperform rating in a research note on Friday, May 3rd. Robert W. Baird lifted their target price on shares of BorgWarner from $38.00 to $39.00 and gave the stock a neutral rating in a research note on Thursday. Citigroup lowered their target price on shares of BorgWarner from $41.00 to $36.00 and set a neutral rating for the company in a research note on Friday, July 12th. Finally, JPMorgan Chase & Co. lowered their target price on shares of BorgWarner from $52.00 to $50.00 and set an overweight rating for the company in a research note on Monday, July 22nd. Seven analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of Moderate Buy and an average price target of $41.35.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.