Westport (WPRT) Q2 Earnings Beat Estimates, Sales Decline Y/Y
Westport Fuel Systems Inc. WPRT incurred a loss of 43 cents per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 55 cents. The company had incurred a loss of 60 cents in the year-ago period.
WPRT registered consolidated revenues of $83.4 million, missing the Zacks Consensus Estimate of $86 million. The top line also fell from $85 million generated in the corresponding quarter of 2023. The company delivered an adjusted EBITDA of negative $2 million compared with negative $4 million recorded in the year-ago period.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Segmental Takeaways
From the second quarter of 2024, Westport has started reporting its results under five reportable segments: HPDI JV, Light-Duty, High-Pressure Controls and Systems, Heavy-Duty OEM and Corporate.
HPDI JV: The segment reported net sales of $4.1 million and incurred an operating loss of $2 million in the second quarter of 2024.
Light-Duty: Net sales of the segment totaled $69.5 million, down from $73.7 million in the second quarter of 2023. The downside was mainly due to a decrease in sales in delayed original equipment manufacturer (OEM), independent aftermarket and fuel storage businesses.
The segment reported an operating income of $3.3 million against the year-ago quarter’s operating loss of $1.8 million. Gross profit increased to $15.1 million (22% of revenues) from the year-ago period’s $12.7 million (17% of revenues), primarily due to a change in sales mix.
High-Pressure Controls and Systems: Net sales of the segment totaled $3.4 million compared with $2.8 million in the year-ago period. Increased sales volumes in product and service revenues lead to a year-over-year rise. The segment incurred an operating loss of $0.9 million compared with the operating loss of $0.6 million reported in the corresponding quarter of 2023.
In the reported quarter, gross profit rose $0.1 million to $0.7 million, representing 21% of revenues. The company’s gross profit was $0.6 million or 21% of revenues in the second quarter of 2023.
Heavy-Duty OEM: Net sales of the segment totaled $10.5 million compared with $8.5 million in the year-ago period. An increase in product and engineering sales when the company wholly owned the HPDI business led to a year-over-year rise. The segment incurred an operating loss of $2.3 million compared with the loss of $3.3 million reported in the corresponding quarter of 2023.
Gross profit increased to $1.3 million (12% of revenues) compared with $1.1 million (13% of revenues) in the second quarter of 2023.
Corporate: The segment reported an operating loss of $5.4 million compared with an operating loss of $4.5 million reported in the year-ago period.
Financials
Westport had cash and cash equivalents (including restricted cash) of $41.5 million as of Jun 30, 2024, down from $54.85 million at the end of 2023. Long-term debt decreased to $26.36 million as of Jun 30, 2024, from $30.96 million as of Dec 31, 2023.
Key Releases From the Auto Space
Cummins Inc. CMI reported second-quarter 2024 adjusted earnings of $5.26 per share, beating the Zacks Consensus Estimate of $4.85. The bottom line also rose from $5.18 per share recorded in the year-ago period. Consolidated net sales rose to $8.8 billion compared with $8.64 billion recorded in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $8.28 billion. CMI had cash and cash equivalents of $1.59 billion as of Jun 30, 2024, compared with $2.18 billion as of Dec 31, 2023. The company had a long-term debt of $5.42 billion, up from $4.8 billion as of Dec 31, 2023.
BorgWarner BWA reported adjusted earnings of $1.19 per share for second-quarter 2024, down from $1.35 per share recorded in the prior-year quarter. The bottom line, however, surpassed the Zacks Consensus Estimate of 98 cents. It reported net sales of $3.60 billion, missing the Zacks Consensus Estimate of $3.73 billion. The top line also declined 2% year over year. As of Jun 30, 2024, BWA had $1.29 billion in cash/cash equivalents/restricted cash compared with $1.53 billion as of Dec 31, 2023. As of Jun 30, long-term debt was $3.28 billion, down from $3.70 billion recorded as of Dec 31, 2023.
Gentex Corp. GNTX reported second-quarter 2024 adjusted EPS of 37 cents, which missed the Zacks Consensus Estimate of 52 cents and fell 21.3% year over year. It reported net sales of $573 million, which missed the Zacks Consensus Estimate of $623 million and fell 1.7% from the year-ago period. Gentex had cash and cash equivalents of about $260.2 million as of Jun 30, 2024. The company had nearly 13.2 million shares remaining for buyback as of Jun 30.
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