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Why Is Westport (WPRT) Up 8.4% Since Last Earnings Report?
WPRTWestport Fuel Systems(WPRT) ZACKS·2024-12-12 17:36

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 0.22pershareinQ32024,betterthantheZacksConsensusEstimateofalossof0.22 per share in Q3 2024, better than the Zacks Consensus Estimate of a loss of 0.41 and an improvement from a loss of 0.68inthesamequarterlastyear[2].−Consolidatedrevenueswere0.68 in the same quarter last year [2]. - Consolidated revenues were 66.2 million, missing the Zacks Consensus Estimate of 67millionanddownfrom67 million and down from 77.4 million in Q3 2023 [3]. - Adjusted EBITDA loss was 0.8million,animprovementfromalossof0.8 million, an improvement from a loss of 3 million in the prior year [3]. Segmental Performance - Cespira: Reported net sales of 16.2millionwithanoperatinglossof16.2 million with an operating loss of 5.3 million [4]. - Light-Duty: Net sales increased to 61.5millionfrom61.5 million from 60.2 million year-over-year, with an operating income of 2.4millioncomparedtoalossof2.4 million compared to a loss of 3 million in the previous year [5][6]. - High-Pressure Controls and Systems: Net sales fell to 1.6millionfrom1.6 million from 3.7 million year-over-year, with an operating loss of 1.2million[7][8].−∗∗Heavy−DutyOEM∗∗:Netsaleswere1.2 million [7][8]. - **Heavy-Duty OEM**: Net sales were 3.1 million, down from 13.5millionintheprioryear,butoperatingincomeimprovedto13.5 million in the prior year, but operating income improved to 0.9 million from a loss of 3.7million[9][10].−∗∗Corporate∗∗:Reportedanoperatinglossof3.7 million [9][10]. - **Corporate**: Reported an operating loss of 1 million, improved from a loss of 5millioninthepreviousyear[10].FinancialPosition−Cashandcashequivalentsdecreasedto5 million in the previous year [10]. Financial Position - Cash and cash equivalents decreased to 33.26 million as of September 30, 2024, from 54.85millionattheendof2023[11].−Long−termdebtreducedto54.85 million at the end of 2023 [11]. - Long-term debt reduced to 23.5 million from 30.96millionasofDecember31,2023[11].MarketSentimentandOutlook−TherehasbeenanupwardtrendinestimatesforWestport,withaconsensusestimateshiftof20.1330.96 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].