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With a market cap of $7.4 billion, Michigan-based BorgWarner Inc. (BWA) is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles. The company 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 Q2 earnings results on Wednesday, Jul. 31.
Ahead of the event, analysts expect BorgWarner to report a profit of $1 per share, down 25.9% from $1.35 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 $1.03 for the last reported quarter rose 27.2% year over year and beat the consensus estimate by 18.4% thanks to increased demand for the company’s products.
Looking ahead, analysts expect BorgWarner to report an EPS of $4.05 in fiscal 2024, up 8% from $3.75 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 14.6% annually to $4.64.
BWA stock has dipped by 9% in 2024, trailing behind the broader S&P 500 Index's ($SPX) 15.4% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 5% returns during the same period.
BorgWarner has lagged behind the broader market this year due to supply constraints and rising inflation. However, the company's stock jumped 8.4% on May 2 after its Q1 earnings report exceeded expectations for both EPS and revenue. With strong demand for its exhausts, turbos, and emission control systems, BorgWarner has updated its full-year adjusted profit per share forecast to be between $3.80 and $4.15.
The current consensus opinion on BorgWarner stock is “Moderate Buy” overall. Out of 15 analysts covering the stock, nine suggest a “Strong Buy,” and the remaining six analysts advise a “Hold.”
The average analyst price target for BorgWarner is $41.47, indicating a potential upside of 27.1% from the current price levels.
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.
