BorgWarner (BWA) Tops Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - BorgWarner reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, and showing a slight increase from $1.19 per share a year ago, representing an earnings surprise of +14.15% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - BorgWarner's revenues for the quarter ended June 2025 were $3.64 billion, surpassing the Zacks Consensus Estimate by 2.31%, compared to $3.6 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - BorgWarner shares have increased approximately 8.6% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] - The future performance of BorgWarner's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $3.49 billion, and for the current fiscal year, it is $4.26 on revenues of $13.92 billion [7] Group 3: Industry Context - The Automotive - Original Equipment industry, to which BorgWarner belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BorgWarner's stock performance [5][6]