Why Is Westport (WPRT) Up 8.4% Since Last Earnings Report?

Core Viewpoint - Westport Innovations reported a narrower loss in Q3 2024 compared to the previous year, but revenues declined year-over-year, leading to mixed investor sentiment ahead of the next earnings release [2][3][15]. Financial Performance - The company incurred a loss of $0.22 per share in Q3 2024, better than the Zacks Consensus Estimate of a loss of $0.41 and an improvement from a loss of $0.68 in the same quarter last year [2]. - Consolidated revenues were $66.2 million, missing the Zacks Consensus Estimate of $67 million and down from $77.4 million in Q3 2023 [3]. - Adjusted EBITDA loss was $0.8 million, an improvement from a loss of $3 million in the prior year [3]. Segmental Performance - Cespira: Reported net sales of $16.2 million with an operating loss of $5.3 million [4]. - Light-Duty: Net sales increased to $61.5 million from $60.2 million year-over-year, with an operating income of $2.4 million compared to a loss of $3 million in the previous year [5][6]. - High-Pressure Controls and Systems: Net sales fell to $1.6 million from $3.7 million year-over-year, with an operating loss of $1.2 million [7][8]. - Heavy-Duty OEM: Net sales were $3.1 million, down from $13.5 million in the prior year, but operating income improved to $0.9 million from a loss of $3.7 million [9][10]. - Corporate: Reported an operating loss of $1 million, improved from a loss of $5 million in the previous year [10]. Financial Position - Cash and cash equivalents decreased to $33.26 million as of September 30, 2024, from $54.85 million at the end of 2023 [11]. - Long-term debt reduced to $23.5 million from $30.96 million as of December 31, 2023 [11]. Market Sentiment and Outlook - There has been an upward trend in estimates for Westport, with a consensus estimate shift of 20.13% [12][13]. - The stock has a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [15]. - Westport holds a Growth Score of B and a Momentum Score of A, but a lower value score of D [14]. Industry Context - Westport is part of the Zacks Automotive - Original Equipment industry, where competitor BorgWarner reported revenues of $3.45 billion, a year-over-year decline of 4.8% [16]. - BorgWarner has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating positive market sentiment within the industry [17].