BorgWarner (NYSE:BWA) opened at a 4-month high with shares closing in on resistance at the 200-day moving average as the company raised its profit guidance for 2024 and announced plans to buy back an additional $500M shares.
While EV OEMs are lamenting the slowing momentum in sales, BorgWarner (BWA) Q1 results showed the company is weathering the challenging market conditions with sales and profits both increasing from the same quarter last year.
Total sales were up 6% to $3.6B, beating expectations by a solid $90M, while profits increased by 27% to $1.03 per share, 16 cents better than expectations. The company remained free cash flow negative but should be FCF positive in 2024 to within a range of $475M to $575M.
Gross profit margin widened to 17.9% from 17.1%, while operating margin was 8.2%. For 2024, BorgWarner (BWA) projects its operating margin to be between 8.2% to 8.5%.
The company maintained its full year sales guidance of $14.4B-$14.9B versus the Street consensus of $14.76B. Adjusted earnings guidance for 2024 was increased, however, to $3.80 to $4.15 per share from previous guidance of $3.65 to $4 per share, straddling the consensus estimate of $3.90.
Source link
