BorgWarner (BWA) Optimistic On Organic Sales Prospects

On Nov 20, we issued an updated research report on BorgWarner Inc. (NYSE:BWA) .

On Oct 26, the company posted adjusted earnings of 95 cents per share in third-quarter 2017, surpassing the Zacks Consensus Estimate of 87 cents. Adjusted earnings increased from 78 cents per share reported in the year-ago quarter. Revenues increased 9.1% year over year to $2.42 million, surpassing the Zacks Consensus Estimate of $2.24 billion.

Currently, organic net sales growth for the fourth quarter of 2017 is anticipated to be in the range of 5-6.5%. Net earnings for the fourth quarter are expected in the band of 99 cents to $1.01 per share. For 2017, the company expects net sales to be around $9.67-$9.70 billion against previous expectation of $9.28-$9.38 billion, which translates into organic growth rate of 9-9.5%.

The company expects positive impact of foreign currencies as a result of appreciation of euro of $37 million. Further, BorgWarner expects net earnings in the range of $3.65-$3.70 per share against the previous expectation of $3.50-$3.60 per share in 2017.

The stock has seen the Zacks Consensus Estimate for quarterly earnings being revised 3.1% upward to $1.01 over the last 30 days.

Over the past six months, shares of BorgWarner have outperformed the industry it belongs to. The company’s shares have gained 26.5% compared with the industry’s growth of 18.6%.



Currently, Volkswagen (DE:VOWG_p) has a Zacks Rank #3 (Hold).

A few better-ranked companies in the auto space are AB Volvo (OTC:VLVLY) , Wabco Holdings Inc. (NYSE:WBC) and PACCAR Inc. (NASDAQ:PCAR) and. While AB Volvo and Wabco Holdings sport a Zacks Rank #1 (Strong Buy), PACCAR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Volvo has a long-term growth rate of 15%. Its shares have increased 12.1% in the last three months.

Wabco has a long-term growth rate of 15%. Shares of the company have increased 21.9% in the last six months.

PACCAR has a long-term growth rate of 10%. Its shares have increased 7% in the last three months.

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PACCAR Inc. (PCAR): Free Stock Analysis Report

BorgWarner Inc. (BWA): Free Stock Analysis Report

Wabco Holdings Inc. (WBC): Free Stock Analysis Report

Volvo Ab (VLVLY): Free Stock Analysis Report

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