AUBURN HILLS, Michigan - BorgWarner Inc. (NYSE:BWA) shares gained 4% Thursday after the auto parts supplier reported third-quarter earnings that surpassed analyst expectations and raised its full-year outlook.
The company posted adjusted earnings per share of $1.09 for the quarter, beating the consensus estimate of $0.94. Revenue came in at $3.45 billion, slightly below analysts' projections of $3.5 billion and down 5% YoY.
Despite facing headwinds from a 5.6% decline in its weighted light and commercial vehicle markets, BorgWarner achieved an adjusted operating margin of 10.1% in Q3. The company generated $356 million in operating cash flow and $201 million in free cash flow during the quarter.
"Our strong third quarter operational performance, continued cost controls, and lower effective tax rate allowed us to increase our full-year guidance," said CEO Frédéric Lissalde. "We're well-positioned to deliver profitable growth as we secure new business awards across our product portfolio."
BorgWarner raised its full-year 2024 adjusted EPS guidance to $4.15-$4.30, up from its previous outlook of $3.95-$4.15 and above the $4.10 analyst consensus. However, the company trimmed its revenue forecast to $14.0-$14.2 billion, down from $14.1-$14.4 billion previously, citing a lower market production outlook.
The auto supplier now expects its weighted light and commercial vehicle markets to decline 3.5% to 3% in 2024, compared to its earlier projection of a 3% to 2% drop. BorgWarner anticipates organic sales to be between a 1.5% decrease and flat for the full year.
During Q3, the company repurchased $300 million of its outstanding shares, bringing total buybacks to $400 million year-to-date.
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