BorgWarner Inc. (BWA) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS
BorgWarner Inc. (NYSE:BWA) announced its earnings results on Thursday. The auto parts company reported $0.96 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.07, Bloomberg Earnings reports. BorgWarner had a return on equity of 20.10% and a net margin of 1.56%. The company had revenue of $2.39 billion for the quarter, compared to analyst estimates of $2.27 billion. During the same period in the prior year, the company posted $0.84 EPS. The firm’s quarterly revenue was up 2.5% compared to the same quarter last year. BorgWarner updated its Q3 guidance to $0.84-0.87 EPS and its FY17 guidance to $3.65-3.70 EPS.
BorgWarner (BWA) traded up 2.53% during mid-day trading on Thursday, reaching $47.02. The company had a trading volume of 3,918,608 shares. BorgWarner has a 12 month low of $31.49 and a 12 month high of $48.03. The firm’s 50 day moving average price is $43.60 and its 200-day moving average price is $41.79. The company has a market capitalization of $9.98 billion, a price-to-earnings ratio of 69.97 and a beta of 1.72.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 15th. Investors of record on Friday, September 1st will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.19%. The ex-dividend date is Wednesday, August 30th. BorgWarner’s dividend payout ratio (DPR) is 86.16%.
Several brokerages recently issued reports on BWA. BidaskClub lowered BorgWarner from a “strong-buy” rating to a “buy” rating in a research report on Monday. Zacks Investment Research raised BorgWarner from a “sell” rating to a “hold” rating in a research report on Tuesday, July 18th. Royal Bank Of Canada reaffirmed a “hold” rating and set a $44.00 target price on shares of BorgWarner in a research report on Wednesday, July 12th. Jefferies Group LLC reissued a “buy” rating and issued a $48.00 price objective on shares of BorgWarner in a report on Tuesday, July 4th. Finally, CLSA began coverage on BorgWarner in a report on Thursday, June 22nd. They issued a “hold” rating and a $45.00 price objective on the stock. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have given a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $41.25.
In related news, insider Ronald T. Hundzinski sold 3,776 shares of the business’s stock in a transaction dated Friday, May 5th. The stock was sold at an average price of $41.53, for a total value of $156,817.28. Following the transaction, the insider now owns 141,958 shares in the company, valued at approximately $5,895,515.74. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dennis C. Cuneo sold 1,000 shares of the business’s stock in a transaction dated Tuesday, June 13th. The shares were sold at an average price of $44.06, for a total value of $44,060.00. Following the completion of the transaction, the director now owns 13,398 shares in the company, valued at approximately $590,315.88. The disclosure for this sale can be found here. Insiders own 0.66% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its position in BorgWarner by 3,228.4% in the first quarter. BlackRock Inc. now owns 13,090,582 shares of the auto parts company’s stock valued at $547,056,000 after buying an additional 12,697,279 shares during the last quarter. Pioneer Investment Management Inc. boosted its position in BorgWarner by 56.7% in the first quarter. Pioneer Investment Management Inc. now owns 3,288,289 shares of the auto parts company’s stock valued at $137,417,000 after buying an additional 1,190,369 shares during the last quarter. Vanguard Group Inc. boosted its position in BorgWarner by 3.2% in the first quarter. Vanguard Group Inc. now owns 20,162,288 shares of the auto parts company’s stock valued at $842,583,000 after buying an additional 616,244 shares during the last quarter. Strs Ohio boosted its position in BorgWarner by 3,368.8% in the second quarter. Strs Ohio now owns 548,001 shares of the auto parts company’s stock valued at $23,213,000 after buying an additional 532,203 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in BorgWarner by 24.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,565,948 shares of the auto parts company’s stock valued at $107,231,000 after buying an additional 496,065 shares during the last quarter. Institutional investors own 91.44% of the company’s stock.
BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
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