AUBURN HILLS, Mich. - BorgWarner Inc. (NYSE: NYSE:BWA) delivered a strong performance in the first quarter of 2024, surpassing analyst expectations with an adjusted EPS of $1.03, which was $0.16 higher than the analyst estimate of $0.87.
The company's revenue also exceeded forecasts, reaching $3.6 billion against the consensus estimate of $3.51 billion. This news sent BorgWarner's shares climbing by an impressive 9.5%.
The automotive industry supplier reported a 6% increase in net sales to $3.595 billion for the first quarter, compared to $3.383 billion in the same period last year. The growth was attributed to heightened demand for the company's products, despite the negative impact of foreign currency fluctuations. Adjusted net earnings per diluted share saw a rise from $0.81 in the first quarter of 2023 to $1.03 in the current quarter, driven by higher sales, a reduced effective tax rate, and a lower share count.
BorgWarner's leadership expressed confidence in the company's trajectory, as evidenced by their share repurchase activities, including approximately $100 million of shares bought back in the first quarter and a new authorization to repurchase up to $767 million of shares over the next three years.
Looking ahead, BorgWarner's guidance for full-year 2024 forecasts an EPS range of $3.80 to $4.15, with the midpoint of $3.975 slightly above the analyst consensus of $3.90. The company anticipates full-year revenue to be between $14.4 billion and $14.9 billion, with the midpoint of $14.65 billion falling slightly below the analyst consensus of $14.76 billion.
The company's continued investment in electric mobility, including securing contracts with XPeng (NYSE:XPEV) and Polestar (NASDAQ:PSNY) for high voltage hairpin eMotor and electric Torque Vectoring Disconnect systems, positions BorgWarner as a key player in the rapidly evolving automotive landscape.
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