Westport Fuel (WPRT) Q4 Earnings Lag Estimates, Revenues Top

Westport Fuel Systems Inc.’s (NASDAQ:WPRT) fourth-quarter 2018 net loss from continuing operations was 8 cents per share, wider than the Zacks Consensus Estimate loss of 2 cents. Net loss per share from continuing operations was 14 cents in fourth-quarter 2017. Net loss from continuing operations in the reported quarter was $10.4 million compared with $20.8 million in fourth-quarter 2017.

Westport Fuel logged consolidated revenues of $60.5 million in the reported quarter, up 5% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $59.8 million. This upside was driven by increased aftermarket revenue generation and Westport HPDI 2.0 shipments.

During the quarter under review, consolidated gross margin decreased to $12.3 million (20% of sales) from $14 million (24% of sales) in the year-ago quarter. This decline was due to product mix and fixed costs associated with the sale of Westport HPDI 2.0.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Adjusted EBITDA amounted to $0.2 million compared with negative $4.9 million in the prior-year quarter.

In the reported quarter, CWI revenues rose to $94.1 million from the prior-year quarter’s $91.6 million.

2018 Results

In 2018, the company posted adjusted EBIDTA (Earnings before interest, tax, depreciation and amortization) of $9.7 million or loss of 31 cents per share compared with adjusted EBIDTA of negative $19.7 million or loss of 52 cents per share recorded in the prior year.

The company’s consolidated revenues rose 18% year over year to $270.3 million. In 2017, the figure was $229.8 million.

Financial Position

Westport Fuel had cash and cash equivalents of $61.1 million as of Dec 31, 2018, down from $71.8 million as of Dec 31, 2017.

At the end of the year, net cash flow used in operating activities in continuing operations was $27.4 million in comparison with the prior year’s $46.8 million.

Guidance

For 2019, Westport Fuel expects to sustain growth in light-duty and medium-duty businesses through aftermarket and OEM channels. It projects consolidated revenues from continuing operations to be $265-$295 million.

Zacks Rank & Stocks to Consider

Westport Fuel currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader auto sector are Dana Incorporated (NYSE:DAN) , Oshkosh Corporation (NYSE:OSK) and General Motors Company (NYSE:GM) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dana has an expected long-term growth rate of 4.4%. Over the past three months, shares of the company have gained 33.2%.

Oshkosh has an expected long-term growth rate of 11.3%. Shares of the company have gained 24.6% over the past three months.

General Motors has an expected long-term growth rate of 8.9%. Shares of the company have gained 24.6% over the past three months.

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