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Westport (WPRT) Incurs Wider-Than-Anticipated Loss in Q4

Zacks Equity Research
·4-min read

Westport Fuel Systems Inc. WPRT incurred a loss of 10 cents per share in fourth-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 6 cents. The company had posted an EPS of 4 cents for the year-ago period. Westport registered consolidated revenues of $78 million in the quarter, topping the Zacks Consensus Estimate of $75 million. The top line, however, declined from $82.7 million generated in the corresponding quarter of 2021. Westport generated an adjusted EBITDA of negative $12.9 million in the quarter under review, down from $10 million recorded in the year-ago period.

Segmental Takeaways

Original Equipment Manufacturer (OEM): Net sales of the segment totaled $47.8 million, down from $57.4 million in the fourth quarter of 2021. The segment reported an operating loss of $12.8 million, wider than a loss of $5 million incurred in the year-ago period.

Independent Aftermarket (IAM): Net sales of the segment totaled $30.2 million, compared with $25.3 million in the year-ago period. In the quarter, the segment registered an operating income of $0.6 million, turning around from a loss of $1.3 million in fourth-quarter 2021.

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Corporate Business Segment: In the reported quarter, operating loss for the segment amounted to $5 million, widening from a loss of $3.7 million reported in the year-earlier period.

Financials

Westport had cash and cash equivalents of $86.18 million as of Dec 31, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.2 million at the end of fourth-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $31.5 million in 2022.

WPRT carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Lear Corp. LEA reported fourth-quarter 2022 adjusted earnings of $2.81 per share, surging from $1.22 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.54 per share. Higher-than-expected earnings across both business segments led to the outperformance. In the reported quarter, revenues increased 10% year over year to $5,370.9 million. The top line also beat the Zacks Consensus Estimate of $5,226 million.

The company had $1,114.9 million in cash and cash equivalents at the quarter’s end versus $1,318.3 million recorded as of Dec 31, 2021. Lear had long-term debt of $2,591.2 million at the quarter end, lower than a debt of $2,595.2 million as of 2021-end.

BorgWarner, Inc. BWA reported adjusted earnings of $1.26 per share for fourth-quarter 2022, up from $1.06 recorded in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.04 per share. Higher-than-anticipated revenues across e-Propulsion & Drivetrain, Fuel-System and Aftermarket segments resulted in the outperformance. The automotive equipment supplier reported net sales of $4,108 million, outpacing the Zacks Consensus Estimate of $3,892 million. The top line also moved up 12.4% year over year.

In the October-December quarter, BorgWarner had $1,338 million in cash equivalents compared with $1,844 million on Dec 31, 2021. In the December quarter, long-term debt was $4,166 million, down from $4,261 million recorded on Dec 31, 2021.

Magna International MGA reported fourth-quarter 2022 adjusted earnings of 91 cents per share, which slumped 30% on a year-over-year basis. The bottom line also lagged the Zacks Consensus Estimate of $1.24 a share. Lower-than-expected EBIT in Body Exteriors & Structures, Power & Vision and Seating Systems segments led to the underperformance. In the reported quarter, net sales increased 5% from the prior-year quarter to $9,568 million, surpassing the consensus mark of $9,473 million.

Magna had $1,234 million in cash and cash equivalents as of Dec 31, 2022, down from $2,948 million in 2021-end. Long-term debt, as of Dec 31, 2022, was $2,847 million, down from $3,538 million in 2021-end.

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Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report

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