Westport (WPRT) Reports Wider-Than-Estimated Loss in Q1


Westport Fuel Systems Inc.


WPRT

incurred a loss of 4 cents per share in first-quarter 2022, wider than the year-ago loss of 2 cents and the Zacks Consensus Estimate of a loss of 3 cents. Westport registered consolidated revenues of $76.5 million in the first quarter, beating the Zacks Consensus Estimate of $75.9 million. The top line was almost flat with the year-ago level of $76.4 million.

Segmental Takeaways


Original Equipment Manufacturer (OEM)

: Net sales of the segment jumped 21% year over year to $51.8 million in the reported quarter, mainly due to additional revenues from the acquired Stako sp. zo.o fuel storage business, increased light-duty OEM business sales volumes to OEMs in India and increased sales volume in electronics business. The segment reported an operating loss of $6.3 million, narrower than the loss of $6.5 million incurred in the year-ago period.


Independent Aftermarket (IAM)

: Net sales of the segment totaled $24.7 million, down 27% from the year-ago period, primarily due to decreased sales volumes to Russian customers due to the Russia-Ukraine war and a fall in sales to Africa. In the quarter, the segment incurred an operating loss of $0.4 million against earnings of $1.6 million in first-quarter 2021.


Corporate Business Segment

: In the reported quarter, operating loss of the segment amounted to $4.1 million, widening from the loss of $3.3 million reported in the year-earlier period.

Financials

Westport had cash and cash equivalents of $127.6 million as of Mar 31, 2022, up from $124.9 million at end of 2021. Long-term debt decreased to $41.7 million at the end of first-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash flow used in operating activities was $16.9 million, a sharp increase from $2.6 million from the prior-year period.

Zacks Rank & Key Picks

WPRT currently carries a Zacks Rank #4 (Sell).

Better-ranked players in the auto space include

BRP Group, Inc.


DOOO

, sporting a Zacks Rank #1 (Strong Buy) and

Dorman Products


DORM

and

Standard Motor Products


SMP

, each carrying a Zacks Rank #2 (Buy), currently. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.

BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.5% over the past year.

Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.

Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 7.2% over the past year.

Standard Motor has an expected earnings growth rate of 1.35% for the current year.The Zacks Consensus Estimate for current-year earnings has been revised around 2% upward in the past 60 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has lost 13.9% over the past year.


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