Jefferies Financial Group Comments on BorgWarner Inc.’s FY2018 Earnings (BWA)

BorgWarner Inc. (NYSE:BWA) – Analysts at Jefferies Financial Group issued their FY2018 earnings per share estimates for BorgWarner in a research report issued on Monday, December 3rd. Jefferies Financial Group analyst D. Kelley expects that the auto parts company will earn $4.35 per share for the year. Jefferies Financial Group has a “Buy” rating and a $48.00 price objective on the stock. Jefferies Financial Group also issued estimates for BorgWarner’s Q4 2018 earnings at $1.07 EPS, FY2019 earnings at $4.61 EPS and FY2020 earnings at $4.96 EPS.

BorgWarner (NYSE:BWA) last posted its earnings results on Thursday, October 25th. The auto parts company reported $1.00 EPS for the quarter, beating the consensus estimate of $0.99 by $0.01. The firm had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.45 billion. BorgWarner had a return on equity of 22.68% and a net margin of 5.26%.

Several other equities analysts have also commented on BWA. ValuEngine lowered BorgWarner from a “sell” rating to a “strong sell” rating in a report on Saturday, September 1st. Royal Bank of Canada dropped their target price on BorgWarner to $49.00 and set a “positive” rating on the stock in a report on Wednesday, September 19th. BMO Capital Markets set a $60.00 target price on BorgWarner and gave the company a “buy” rating in a report on Thursday, September 20th. Wolfe Research initiated coverage on BorgWarner in a report on Tuesday, October 2nd. They issued an “outperform” rating on the stock. Finally, Buckingham Research dropped their target price on BorgWarner from $55.00 to $48.00 and set a “neutral” rating on the stock in a report on Wednesday, October 3rd. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $53.79.

NYSE:BWA opened at $37.28 on Thursday. The firm has a market capitalization of $7.84 billion, a P/E ratio of 9.58, a price-to-earnings-growth ratio of 1.28 and a beta of 1.80. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.28 and a current ratio of 1.66. BorgWarner has a 12 month low of $35.71 and a 12 month high of $58.22.

Several hedge funds have recently modified their holdings of the business. Marshall Wace North America L.P. grew its holdings in shares of BorgWarner by 76.7% during the third quarter. Marshall Wace North America L.P. now owns 69,075 shares of the auto parts company’s stock worth $2,955,000 after purchasing an additional 29,984 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of BorgWarner during the third quarter worth about $12,923,000. HM Payson & Co. purchased a new position in shares of BorgWarner during the third quarter worth about $1,072,000. Vanguard Group Inc. grew its holdings in shares of BorgWarner by 2.5% during the third quarter. Vanguard Group Inc. now owns 21,712,547 shares of the auto parts company’s stock worth $928,863,000 after buying an additional 522,490 shares during the last quarter. Finally, Legal & General Group Plc grew its holdings in shares of BorgWarner by 1.7% during the third quarter. Legal & General Group Plc now owns 1,027,833 shares of the auto parts company’s stock worth $43,971,000 after buying an additional 17,602 shares during the last quarter. 90.60% of the stock is currently owned by institutional investors.

In other BorgWarner news, Director Thomas T. Stallkamp sold 7,692 shares of the firm’s stock in a transaction dated Wednesday, October 31st. The stock was sold at an average price of $39.33, for a total transaction of $302,526.36. Following the transaction, the director now owns 3,000 shares of the company’s stock, valued at $117,990. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Alexis P. Michas sold 10,003 shares of the firm’s stock in a transaction dated Monday, November 26th. The stock was sold at an average price of $39.99, for a total value of $400,019.97. Following the transaction, the director now directly owns 78,223 shares in the company, valued at approximately $3,128,137.77. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 38,475 shares of company stock worth $1,526,992. Corporate insiders own 0.74% of the company’s stock.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.82%. The ex-dividend date is Friday, November 30th. BorgWarner’s payout ratio is 17.48%.

BorgWarner Company Profile

BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates through two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; and timing systems, such as timing chains, variable cam timing products, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains for light vehicles, and hybrid power transmission chains.

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Earnings History and Estimates for BorgWarner (NYSE:BWA)

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