Shares of BorgWarner Inc.
BWA,
fell 1.5% in premarket trading Thursday, even after the provider of automotive systems for combustion, hybrid and electric vehicles (EV) reported fourth-quarter profit and sales that rose above expectations, and said it expects 2023 EV sales rise “significantly.” Net income rose to $255 million, or $1.09 a share, from $129 million, or 54 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.26 beat the FactSet consensus of $1.08. Sales grew 12.4% to $4.11 billion, above the FactSet consensus of $3.90 billion. Cost of sales rose less than sales, up 8.1% to $3.28 billion, as gross margin improved to 20.3% from 17.1%. For 2023, the company expects adjusted EPS of $4.50 to $5.00 and revenue of $16.7 billion to $17.5 billion, compared with the FactSet consensus for EPS of $4.90 and sales of $16.7 billion. The company expects 2023 EV sales to rise to $1.5 billion to $1.8 billion from $870 million in 2022. The stock, which closed at a 13-month high a week ago, has soared 20.1% over the past three months while the S&P 500
SPX,
has gained 9.9%.
Credit: marketwatch.com