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Here's What Key Metrics Tell Us About BorgWarner (BWA) Q3 Earnings

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BorgWarner (BWA - Free Report) reported $3.62 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 10.8%. EPS of $0.98 for the same period compares to $1.24 a year ago.

The reported revenue represents a surprise of -2.63% over the Zacks Consensus Estimate of $3.72 billion. With the consensus EPS estimate being $0.91, the EPS surprise was +7.69%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how BorgWarner performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Organic Net Sales Change: 10.7% versus 12.9% estimated by two analysts on average.
  • Net Sales- Air Management: $1.95 billion compared to the $2.03 billion average estimate based on four analysts.
  • Net Sales- ePropulsion: $571 million versus the four-analyst average estimate of $616.90 million.
  • Net sales- Drivetrain & Battery Systems: $1.15 billion versus $1.08 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -16.5% change.
  • Net sales- Inter-segment eliminations: -$39 million compared to the -$86.27 million average estimate based on two analysts. The reported number represents a change of -73.3% year over year.
  • Adjusted Operating Income- ePropulsion: -$20 million compared to the -$25.22 million average estimate based on four analysts.
  • Adjusted Operating Income- Drivetrain & Battery Systems: $147 million versus $123.89 million estimated by four analysts on average.
  • Adjusted Operating Income- Air Management: $294 million versus $293.93 million estimated by four analysts on average.
View all Key Company Metrics for BorgWarner here>>>

Shares of BorgWarner have returned -5.4% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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