BorgWarner Inc. (NYSE: BWA) – BorgWarner stock drops after second quarter results, slashes operating margin outlook at year-end 21


  • BorgWarner Inc (NYSE: BWA) reported 163.5% year-on-year net sales growth in the second quarter of FY21 to $ 3.76 billion, beating analysts’ consensus of $ 3.52 billion. Organic sales increased 72%.
  • Air Management segment net sales increased 124.4% year-on-year, and e-Propulsion & Drivetrain segment gained 120.3%.
  • Gross profit climbed 337.9% to $ 762 million, and gross margin rose 810 basis points to 20.3%.
  • The operating margin was 8.4%, with operating profit of $ 317 million.
  • The company had $ 1.6 billion in cash and cash equivalents as of June 30, 2021.
  • Free cash flow from operating activities for the quarter was $ 280 million with free cash flow of $ 133 million.
  • Adjusted EPS of $ 1.08 broke analyst consensus by $ 0.81.
  • Outlook: BorgWarner forecasts FY21 sales of $ 15.2 billion to $ 15.6 billion (was $ 14.8 billion to $ 15.4 billion), against a consensus of $ 15.13 billion.
  • The company expects adjusted EPS of $ 4.15 to $ 4.40 (before $ 4.00 to $ 4.35), against a consensus of $ 4.19.
  • He sees an operating margin of 8.7% – 9.3% (previously 8.7% – 9.4%).
  • Price action: BWA shares are trading down 4.01% to $ 47.38 on the last check on Wednesday.
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