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Westport Fuel (WPRT) Q2 Earnings In Line, Revenues Beat

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Westport Fuel Systems Inc.’s (WPRT - Free Report) second-quarter 2018 adjusted net loss from continuing operations was 4 cents per share, in line with the Zacks Consensus Estimate. Net loss per share from continuing operations was 12 cents per share in second-quarter 2017.

Total net loss from continuing operations in the reported quarter was $5.7 million compared with net loss of $13.4 million in second-quarter 2017.

Westport Fuel logged consolidated revenues of $80.5 million in the reported quarter, up 37% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $64.5 million. This upside was driven by strong sales growth in aftermarket, DOEM, and light- and medium-duty OEM businesses. Rise of euro vis-a-vis the U.S. dollar, along with shipments of Westport HPDI 2.0 product, contributed to rise in revenues.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

 

During the quarter under review, consolidated gross margin increased to $21.7 million (27% of sales) from $15.3 million (26% of sales) recorded in the year-ago quarter.

Adjusted EBITDA amounted to $8.6 million compared with a negative $5.3 million in the prior-year quarter, reflecting strong operational results across businesses.

In second-quarter 2018, CWI revenues rose to $86.9 million from the prior-year quarter’s figure of $79.5 million. This rise is driven by the higher demand for near-zero emissions products and higher parts revenues.

Financial Position

Westport Fuel had cash and cash equivalents of $51.2 million as of Jun 30, 2018, down from $55.2 million as of Mar 31, 2018. The cash balance excludes the proceeds from the sale of compressor business to Snam S.p.A., which was completed on Jul 25, 2018.

In the first half of 2018, cash outflow from operations was $14.9 million in comparison with the prior year’s outflow of $29.1 million.

Zacks Rank & Key Picks

Westport Fuel currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include Honda Motor Co., Ltd. (HMC - Free Report) , Fox Factory Holding Corporation (FOXF - Free Report) and Allison Transmission Holdings. Inc. (ALSN - Free Report) . Honda presently carries a Zacks Rank #2 (Buy) while Fox Factory and Allison Transmission sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Honda has an expected long-term growth rate of 3%. Shares of the company have risen 7.6% in the past year.

Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 74.6%.

Allison Transmission has an expected long-term growth rate of 10%. Over a year, shares of the company have gained 33.9%.

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