Westport Fuel Systems Inc.
WPRT
posted fourth-quarter 2021 earnings per share of 3 cents, unchanged from the year-ago period. The Zacks Consensus Estimate was pegged at break-even. Westport registered consolidated revenues of $82.7 million for the fourth quarter, on par with the Zacks Consensus Estimate and the year-ago level.
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. price-consensus-eps-surprise-chart
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Westport Fuel Systems Inc. Quote
Segmental Takeaways
Original Equipment Manufacturer (OEM)
: Net sales of the segment inched down 2.4% year over year to $57.4 million for the reported quarter, mainly due to manufacturing delays amid semiconductor shortage. The segment reported an operating loss of $5 million, wider than the loss of $3 million incurred in fourth-quarter 2020.
Independent Aftermarket (IAM)
: Net sales of the segment totaled $25.3 million, increasing $0.2 million from the year-ago period, primarily due to growth in the African and South American markets. Yet, the segment incurred an operating loss of $1.3 million against earnings of $1.3 million in fourth-quarter 2020.
Corporate Business Segment
: For the reported quarter, operating loss of the segment amounted to $3.7 million against a profit of $0.9 million reported in the year-earlier period.
Other Tidbits
As previously announced,
Cummins
CMI
and Westport ended their 10-year partnership by terminating the Cummins Westport joint venture (CWI JV) agreement effective Dec 31, 2021. Cummins is now the sole owner of the former CWIJV. Westport received $20 million from CMI for its share of intellectual property.
It is to be noted that Westport will use the proceeds from Cummins to pursue a hydrogen high-pressure direct injection (HPDI) system, which the latter might use in its 15-liter internal combustion engine. CMI and WPRT have agreed to conduct an initial technical assessment of the hydrogen HPDI.
Westport had cash and cash equivalents of $124.8 million as of Dec 31, 2021, up from $64.3 million at 2020-end. Long-term debt decreased to $45.1 million at the end of fourth-quarter 2021 from $45.7 million on Dec 30, 2020.
Amid supply chain snarls and the recent volatility in fuel prices, Westport has refrained from providing any quantitative guidance on sales or earnings for 2022. The company currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
2 Key Picks
If you wish to invest in the auto space, consider betting on
Harley-Davidson
HOG
and
CarGurus
CARG
, each carrying a Zacks Rank #1.
Harley-Davidson is one of the leading motorcycle makers in the world. The Zacks Consensus Estimate for earnings for the current year has been revised 21.7% upward in the past 60 days to $4.27 a share, implying year-over-year growth of 1.9%.
Harley-Davidson’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.6%, on average. The stock has an expected long-term EPS growth rate of 46.4%.
CarGurus is an online automotive marketplace connecting buyers and sellers of new and used cars. The Zacks Consensus Estimate for earnings for the current year has been revised 3.6% upward in the past seven days to $1.72 a share, implying year-over-year growth of 8.9%.
CarGurus’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. CARG pulled off a trailing four-quarter earnings surprise of 45.3%, on average. The stock has an expected long-term EPS growth rate of 13%.
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