WPRT Earnings Prediction
The chart below shows how WPRT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WPRT sees a -4.81% change in stock price 10 days leading up to the earnings, and a -9.97% change 10 days following the report. On the earnings day itself, the stock moves by +4.80%. This data can give you a slight idea of what to expect for the next quarter's release.
WPRT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
66.25M
-14.39%
-20.55%
Gross Margin
20.70%
32.10%
5.24%
Operating Margin
-0.04%
-99.71%
-99.36%
Net Margin
-5.84%
-62.13%
-183.67%
EPS
-0.22
-67.65%
-166.67%
No Data Available
WPRT Earnings Analysis
Westport Fuel Systems Inc Common Shares Corporation (WPRT.O) Earnings Conference Call
Positive
Cespira Revenue Increase: 1. Cespira Revenue Growth: Cespira generated $16.2 million in revenue during Q3 2024, a $2.7 million increase from the same quarter last year, effectively offsetting the decline in consolidated revenue.
Gross Margin Improvement: 2. Improved Gross Margins: Gross margin increased to $14.5 million or 22% of revenue in Q3 2024, up from $13.2 million or 17% of revenue in Q3 2023, driven by increased sales volumes and cost-cutting initiatives.
SG&A Expense Decrease: 3. Significant SG&A Reduction: The company decreased its SG&A expenses by almost 40% compared to Q3 2023, resulting in a $6.6 million reduction, with only $2.3 million of this related to expenses now accounted for in Cespira.
Light-Duty Revenue Growth: 4. Light-Duty Revenue Increase: Light-duty revenue for Q3 2024 was $61.5 million, up from $60.2 million in Q3 2023, primarily driven by increased sales in the light-duty OEM and independent aftermarket businesses.
Adjusted EBITDA Enhancement: 5. Adjusted EBITDA Improvement: The adjusted EBITDA loss improved to $800,000 in Q3 2024, a significant improvement over the $3 million adjusted EBITDA loss recorded in the prior year period.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Westport reported a total revenue of $66.2 million for Q3 2024, marking a 14% decrease compared to the prior year period, primarily driven by the heavy-duty OEM business now conducted under the joint venture Cespira.
Heavy-Duty OEM Revenue Decline: 2. Heavy-Duty OEM Revenue Drop: Revenue from the heavy-duty OEM segment fell to $3.1 million, down $10.4 million from the same quarter last year, due to the transfer of this business to Cespira.
Adjusted EBITDA Improvement: 3. Adjusted EBITDA Loss: The company recorded an adjusted EBITDA loss of $800,000 in Q3 2024, although this was an improvement from the $3 million loss in the same period last year, indicating ongoing financial challenges.
Cash Burn and Liquidity Issues: 4. Cash Burn and Liquidity Concerns: Cash and cash equivalents decreased by $8.2 million to $33.3 million by the end of Q3 2024, with cash used in operating activities amounting to $9.9 million, raising concerns about liquidity.
Inventory Management Challenges: 5. Inventory Increase: Inventory rose by $9.9 million in Q3 2024, primarily due to preparations for expected deliveries of Euro 6 kits, indicating potential inefficiencies in inventory management.
WPRT FAQs
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WPRT Earning Call Sentiment
Westport Fuel Systems Inc. (WPRT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WPRT.O
4.32%Positive
The earnings call presented a mixed picture: while the company announced a promising JV with Volvo and improved margins, it also reported a revenue decline and cash flow issues. The Q&A revealed potential opportunities in Europe and supply chain improvements, but uncertainties remain about hydrogen infrastructure and restructuring timelines. The lack of clear guidance on key metrics and the absence of orders from Weichai further contribute to a neutral sentiment. Despite some positive developments, the overall outlook remains cautious, suggesting a neutral stock price movement in the short term.