BWA Earnings Prediction
The chart below shows how BWA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BWA sees a +2.91% change in stock price 10 days leading up to the earnings, and a +0.97% change 10 days following the report. On the earnings day itself, the stock moves by -1.72%. This data can give you a slight idea of what to expect for the next quarter's release.
BWA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.44B
-2.36%
-0.29%
Gross Margin
19.86%
6.15%
7.70%
Operating Margin
10.00%
15.47%
16.96%
Net Margin
-11.22%
-332.30%
-250.60%
EPS
-1.87
-383.33%
-279.81%
No Data Available
BWA Earnings Analysis
Borgwarner Inc Corporation (BWA.N) Earnings Conference Call
Positive
Earnings Beat Expectations: BorgWarner reported an adjusted EPS of $1.01, exceeding expectations of $0.93, reflecting a strong performance in a challenging market.
Sales Performance Analysis: The company achieved approximately $14 billion in sales for 2024, with an outgrowth of about 280 basis points compared to a 3% decline in industry production.
Operating Margin Improvement: Adjusted operating margin for the full year was above 10%, exceeding the high end of guidance and reflecting a 50 basis point improvement from 2023.
Strong Free Cash Flow: BorgWarner generated $729 million in free cash flow for the year, surpassing full-year guidance and demonstrating strong cash generation capabilities.
Product Awards and Growth Potential: The company secured multiple new product awards, indicating robust future growth potential across both foundational and e-product segments.
Negative
Q4 2024 Sales Decline: Sales for Q4 2024 were reported at just over $3.4 billion, down approximately 2% compared to the prior year, indicating a decline in revenue despite a strong adjusted operating margin.
Goodwill Impairment Charge: The company recorded a significant goodwill impairment charge of $577 million in Q4 due to reduced long-term sales and operating income estimates, reflecting challenges in the BEV adoption timeline.
Free Cash Flow Decline: Free cash flow for Q4 2024 was $539 million, down $140 million from the previous year, attributed to lower business activity and timing of customer payments, signaling potential liquidity concerns.
2025 Sales Guidance Decline: The guidance for 2025 anticipates total sales to be in the range of $13.4 billion to $14 billion, which represents a decline from 2024's $14 billion, indicating a challenging market outlook.
Operating Margin Projection: The expected full-year adjusted operating margin for 2025 is projected to be between 10.0% to 10.2%, which is a slight decrease from the 10.1% margin achieved in 2024, suggesting potential margin compression ahead.
BWA FAQs
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BWA Earning Call Sentiment
BorgWarner Inc. (NYSE:BWA) Q4 2024 Earnings Call Transcript
BWA.N
-2.31%Positive
The earnings call presents a mixed picture: positive elements include an improved margin outlook and strong free cash flow, but these are offset by concerns about declining industry volumes, BEV adoption delays, and foreign exchange impacts. The Q&A reveals some analyst concerns about growth and margin sustainability. The guidance for 2024 and 2025 shows slight reductions in sales expectations, but with stable margins. Given these factors, the stock price is likely to remain relatively stable, resulting in a neutral sentiment rating.
