BorgWarner (NYSE:BWA) issued an update on its FY 2020
Pre-Market earnings guidance on Thursday morning. The company provided EPS guidance of 3.85-4.15 for the period, compared to the Thomson Reuters consensus EPS estimate of $4.01. The company issued revenue guidance of $9.75-10.075 billion, compared to the consensus revenue estimate of $10.15 billion.BorgWarner also updated its FY20 guidance to $3.85-4.15 EPS.
Shares of BorgWarner stock traded down $0.93 on Friday, reaching $34.15. 5,008,148 shares of the company were exchanged, compared to its average volume of 2,867,081. The stock has a fifty day moving average price of $39.10 and a 200-day moving average price of $38.84. The firm has a market capitalization of $6.87 billion, a price-to-earnings ratio of 9.38, a price-to-earnings-growth ratio of 1.07 and a beta of 1.91. The company has a current ratio of 1.58, a quick ratio of 1.26 and a debt-to-equity ratio of 0.36. BorgWarner has a fifty-two week low of $30.71 and a fifty-two week high of $46.60.
BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, February 13th. The auto parts company reported $1.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.14. The company had revenue of $2.56 billion for the quarter, compared to analyst estimates of $2.49 billion. BorgWarner had a return on equity of 19.43% and a net margin of 7.43%. BorgWarner’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.21 earnings per share. On average, equities analysts anticipate that BorgWarner will post 3.99 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.99%. The ex-dividend date is Friday, February 28th. BorgWarner’s dividend payout ratio (DPR) is presently 15.18%.
BorgWarner announced that its Board of Directors has initiated a share repurchase program on Tuesday, January 28th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 14.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.
BWA has been the topic of several recent analyst reports. Wolfe Research lowered BorgWarner from an outperform rating to a peer perform rating and dropped their price target for the company from $50.00 to $46.00 in a research report on Friday, November 22nd. Bank of America raised BorgWarner from a neutral rating to a buy rating and set a $52.00 price target on the stock in a research report on Wednesday, January 29th. Barclays reissued a buy rating and set a $46.00 price target on shares of BorgWarner in a research report on Sunday, November 3rd. Royal Bank of Canada set a $41.00 price target on BorgWarner and gave the company a hold rating in a research report on Friday, November 1st. Finally, ValuEngine raised BorgWarner from a sell rating to a hold rating in a research report on Friday, January 10th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and eight have given a buy rating to the stock. The company presently has an average rating of Hold and an average target price of $44.71.
BorgWarner Company Profile
BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates in two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; eBoosters; and timing systems products, including timing chains, variable cam timing crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains.
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