Research Desk Line-up: Delphi Automotive Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on BorgWarner Inc. (NYSE: BWA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BWA, following the Company's disclosure of its second quarter fiscal 2017 results on July 27, 2017. The auto parts supplier outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Auto Parts industry. Pro-TD has currently selected Delphi Automotive PLC (NYSE: DLPH) for due-diligence and potential coverage as the Company announced on August 02, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Delphi Automotive when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BWA; also brushing on DLPH. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=BWA

http://protraderdaily.com/optin/?symbol=DLPH

Earnings Reviewed

For the three months ended June 30, 2017, BorgWarner's net sales were $2.39 billion, up 2.6% compared to sales of $2.33 billion in Q2 2016. Excluding the impact of foreign currencies and the sale of the Remy light vehicle aftermarket business, the Company's net sales grew 7.8% on a y-o-y basis. BorgWarner's sales exceeded analysts' estimates of $2.27 billion.

For Q2 2017, BorgWarner's net earnings totaled $212 million, or $1.00 per diluted share, compared to $164 million, or $0.76 per diluted share, in Q2 2016. The Company's reported quarter earnings included non-comparable items of $0.05 per diluted share, while net earnings in the prior year's corresponding quarter included net non-comparable items of $0.08 per diluted share. The impact of foreign currencies decreased net sales by approximately $38 million and decreased net earnings by approximately $0.02 per diluted share in Q2 2017. BorgWarner's earnings, adjusted for pretax gains, came in at $0.96 per share, which was ahead of Wall Street's expectations of 0.89 per share.

Segment Results

During Q2 2017, BorgWarner's Engine segment's net sales were $1.48 billion compared to $1.44 billion in Q2 2016. Excluding the impact of foreign currencies, the segment's net sales were up 4.5% on a y-o-y basis. The Engine segment's adjusted earnings before interest, income taxes, and non-controlling interest (EBIT) totaled $244 million in the reported quarter. Excluding the impact of foreign currencies, adjusted EBIT was $250 million, up 4.9% on a y-o-y basis.

BorgWarner's Drivetrain segment recorded net sales of $921 million in Q2 2017 compared with $895 million in Q2 2016. Excluding the impact of foreign currencies and the sale of the Remy light vehicle aftermarket business, net sales were up 13.9% on a y-o-y basis. Drivetrain unit's adjusted EBIT was $110 million in Q2 2017. Excluding the impact of foreign currencies, the segment's adjusted EBIT was $110 million, up 17.5% on a y-o-y basis.

Cash Matters

During H1 2017, BorgWarner's net cash provided by operating activities was $399 million compared to $362 million in H1 2016. The Company's investments in capital expenditures, including tooling, outlays, totaled $254 million in the first six months of 2017 compared to $235 million in the first six months of 2016.

At the end of Q2 2017, BorgWarner's balance sheet debt was flat and cash decreased by $57 million on a y-o-y basis. The Company's net debt to net capital ratio was 33.2% at the end reported quarter compared to 35.0% at the end of the prior year's same quarter.

Outlook

For FY17, BorgWarner has increased its organic growth guidance. The Company's full year net sales are expected to be in the range of $9.28 billion to $9.38 billion, implying organic net sales growth of 6.5% to 7.5%. Foreign currencies are expected to lower sales by approximately $100 million. The Company's net earnings are expected to be within a range of $3.65 to $3.70 per diluted share for FY17, with the increase in guidance primarily due to higher than previously expected sales.

For Q3 2017, BorgWarner is forecasting organic net sales growth of 3.0% to 6.0% compared with Q3 2016 pro-forma net sales of $2.1 billion. The Company expects foreign currencies to lower sales by approximately $36 million, or 1.7%. BorgWarner's net earnings are expected to be within a range of $0.84 to $0.87 per diluted share.

Stock Performance

On Thursday, August 10, 2017, the stock closed the trading session at $44.90, falling 3.50% from its previous closing price of $46.53. A total volume of 2.02 million shares have exchanged hands. BorgWarner's stock price soared 7.34% in the last three months, 10.46% in the past six months, and 33.19% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 13.84%. The stock is trading at a PE ratio of 50.06 and has a dividend yield of 1.25%. At Thursday's closing price, the stock's net capitalization stands at $9.45 billion.

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SOURCE: Pro-Trader Daily