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Westport (WPRT) Q1 Loss Wider Than Expected, Revenues Down
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Westport Fuel Systems Inc. (WPRT - Free Report) reported loss per share of 11 cents in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents. The figure also comes in wider than the year-ago quarter’s loss of 2 cents a share. Lower revenues in the OEM, IAM and CWI segments resulted in this underperformance.
Net loss from continuing operations in the reported quarter was $15.3 million, as against the net loss of $3 million posted in first-quarter 2019.
Westport logged consolidated revenues of $67.2 million in the first quarter, down 8% year over year. However, revenues surpassed the Zacks Consensus Estimate of $59 million.
During the first quarter, consolidated gross margin decreased to $4.3 million from the prior year’s $17.2 million. Pretax loss amounted to $3.6 million compared with the prior-year quarter’s pretax profit of $7.3 million.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Original Equipment Manufacturer Segment (OEM): Net sales of the segment decreased 12.3% year over year to $34.2 million in the reported quarter mainly due to the coronavirus crisis-related shutdowns, contractual price reductions to its HPDI launch partner, and lower light-duty OEM sales to Russian and German OEMs. The segment’s operating loss flared upto $14.2 million from the loss of $2.7 million incurred in first-quarter 2019.
Independent Aftermarket Segment (IAM): Net sales of the segment decreased 3.5% year over year to $34.2 million in the reported quarter on the pandemic-induced supply-chain disruptions. The segment’s operating income rose to $4.8 million from the prior-year quarter’s $2.2 million.
CWI Joint Venture (50%): This segment’s revenues totaled $38.3million, down from the year-ago quarter’s $46.1 million on higher sales volume. Operating income was $6.7 million, down from the first-quarter 2019 level of $9.9 million primarily due to lower revenues.
Corporate Business Segment: Operating loss of the segment amounted to $10.2 million, wider than the operating loss of $8.3 million incurred in year-earlier period. The segment’s depreciation and amortization expenses came in at $0.1million, flat year over year.
Financial Position
Westport had cash and cash equivalents of $39 million as of Mar 31, 2020, down from $46 million as of Dec 31, 2019. Total debt rose to $50 million in the reported quarter from $49 million as of Dec 31, 2019.
Zacks Rank & Stocks to Consider
Westport currently carries a Zacks Rank #4 (Sell).Shares of the company have depreciated 40.9%, year to date, compared with the industry’s decline of 9.9%.
Shares of Tesla have appreciated 106.6%, year to date, compared with its industry’s rise of 30.3%.
Shares of Niu have gained 37.7%, year to date, as against the industry’s decline of 9.9%.
Shares of Halfords have rallied 44.2%, year to date, as against its industry’s decline of 9.9%.
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Westport (WPRT) Q1 Loss Wider Than Expected, Revenues Down
Westport Fuel Systems Inc. (WPRT - Free Report) reported loss per share of 11 cents in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents. The figure also comes in wider than the year-ago quarter’s loss of 2 cents a share. Lower revenues in the OEM, IAM and CWI segments resulted in this underperformance.
Net loss from continuing operations in the reported quarter was $15.3 million, as against the net loss of $3 million posted in first-quarter 2019.
Westport logged consolidated revenues of $67.2 million in the first quarter, down 8% year over year. However, revenues surpassed the Zacks Consensus Estimate of $59 million.
During the first quarter, consolidated gross margin decreased to $4.3 million from the prior year’s $17.2 million. Pretax loss amounted to $3.6 million compared with the prior-year quarter’s pretax profit of $7.3 million.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote
Operational Results
Original Equipment Manufacturer Segment (OEM): Net sales of the segment decreased 12.3% year over year to $34.2 million in the reported quarter mainly due to the coronavirus crisis-related shutdowns, contractual price reductions to its HPDI launch partner, and lower light-duty OEM sales to Russian and German OEMs. The segment’s operating loss flared upto $14.2 million from the loss of $2.7 million incurred in first-quarter 2019.
Independent Aftermarket Segment (IAM): Net sales of the segment decreased 3.5% year over year to $34.2 million in the reported quarter on the pandemic-induced supply-chain disruptions. The segment’s operating income rose to $4.8 million from the prior-year quarter’s $2.2 million.
CWI Joint Venture (50%): This segment’s revenues totaled $38.3million, down from the year-ago quarter’s $46.1 million on higher sales volume. Operating income was $6.7 million, down from the first-quarter 2019 level of $9.9 million primarily due to lower revenues.
Corporate Business Segment: Operating loss of the segment amounted to $10.2 million, wider than the operating loss of $8.3 million incurred in year-earlier period. The segment’s depreciation and amortization expenses came in at $0.1million, flat year over year.
Financial Position
Westport had cash and cash equivalents of $39 million as of Mar 31, 2020, down from $46 million as of Dec 31, 2019. Total debt rose to $50 million in the reported quarter from $49 million as of Dec 31, 2019.
Zacks Rank & Stocks to Consider
Westport currently carries a Zacks Rank #4 (Sell).Shares of the company have depreciated 40.9%, year to date, compared with the industry’s decline of 9.9%.
Some better-ranked stocks in the same sector are Tesla, Inc. (TSLA - Free Report) , Niu Technologies (NIU - Free Report) and Halfords Group Plc (HLFDY - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Tesla have appreciated 106.6%, year to date, compared with its industry’s rise of 30.3%.
Shares of Niu have gained 37.7%, year to date, as against the industry’s decline of 9.9%.
Shares of Halfords have rallied 44.2%, year to date, as against its industry’s decline of 9.9%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>