BorgWarner (NYSE:BWA) shares fell more than 5% in premarket trading Thursday after the company posted weaker-than-estimated earnings and revenue for the fiscal fourth quarter and a disappointing free cash flow guidance.
The company reported earnings per share (EPS) of $0.90, missing the analysts’ prediction of $0.95. Revenue came in at $3.52 billion, falling short of the consensus estimates of $3.62 billion.
In terms of specific segments, Air Management's net sales were $1.88 billion, which did not meet the anticipated $1.95 billion.
However, the company exceeded expectations in free cash flow, reporting $679 million against an estimate of $545.5 million.
At the same time, the firm declared a quarterly dividend of $0.11 per share, totaling an annualized rate of $0.44, set to be paid on March 15, 2024, to shareholders on record as of March 1, 2024; the ex-dividend date is February 29, 2024. This dividend represents an annual yield of 1.3%.
For the full year of 2024, auto and e-mobility supplier expects adjusted net earnings per diluted share are expected to be between $3.65 and $4.00, which is below the consensus estimate of $4.25
Net sales are anticipated to be between $14.4 billion and $14.9 billion, compared to the consensus forecast of $15.34 billion.
Furthermore, BorgWarner forecasts its free cash flow to be in the range of $475 million to $575 million for the full year, significantly below analysts’ expectations of $636.8 million.
The operating margin for 2024 is projected to range from 8.5% to 8.9%.