Canadian automotive systems and components manufacturer Westport Fuel Systems (NASDAQ:WPRT) reported triple-digit growth in its revenues and earnings in its recent quarterly report. However, the question is, given its depressed profit margins, is WPRT a smart investment now? Read more to find out.Based in Canada, Westport Fuel Systems Inc. (WPRT) manufactures advanced fuel delivery components and systems for the automotive industry. Shares of WPRT have gained 145.5% over the past year, reflecting robust investor interest in the clean energy space.
The stock has gained roughly 25% since the company released an impressive earnings report on August 6. Its revenues increased 135% year-over-year to $84.70 million for the second quarter.
Its net income came in at $17.20 million, up 475% or $14.20 million from the same period last year. However, 62.7%, or $8.90 million, of its total net income growth can be attributed to a tax recovery under Italy’s COVID-19 tax relief ruling.