NYSE$BWA

BorgWarner Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

BorgWarner reported an increase in net sales and adjusted net earnings per diluted share for Q1 2023.

BorgWarner's Q1 2023 results showed an 8% increase in net sales to $4,180 million compared to Q1 2022. U.S. GAAP net earnings were $0.93 per diluted share, and adjusted net earnings were $1.09 per diluted share. The company expects 2023 eProduct sales of $2.3 billion to $2.6 billion.

  • Net sales increased by 8% to $4,180 million compared to Q1 2022.
  • Organic sales were up 12% compared to the first quarter 2022, excluding the impact of foreign currencies and acquisitions.
  • U.S. GAAP net earnings were $0.93 per diluted share.
  • Adjusted net earnings were $1.09 per diluted share, excluding non-comparable items.

Headline financials

Total Revenue

$4.18B

Previous: $3.87B+7.9%
EPS (adj)

$1.09

Previous: $1.05+3.8%
Operating Margin

8.1%

No prior period
Adjusted Operating Margin

9.5%

Previous: 10.0%-5.0%
Free Cash Flow

$217M

Previous: $200M+8.5%
Net Income

$217M

Previous: $200M+8.5%
Operating Income

$340M

Previous: $352M-3.4%
Gross Profit

$750M

Previous: $750M+0.0%
Cash & Equivalents

$950M

Previous: $1.5B-36.7%
Total Assets

$17.1B

Previous: $16.7B+2.6%
Stock-Based Comp

$11M

Previous: $12M-8.3%

Revenue & EPS history

BorgWarner · Revenue · Quarterly

$4.18B

Q1 2023+7.9%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The Company has updated full year sales, margin and EPS guidance.

Tailwinds

  • Net sales are expected to be in the range of $17.1 billion to $17.9 billion, compared with 2022 sales of $15.8 billion.
  • This implies a year-over-year increase in organic sales of 7.5% to 12.5%.
  • Foreign currencies are expected to result in a year-over-year increase in sales of approximately $55 million.
  • Operating margin for the full year is expected to be in the range of 8.7% to 9.0%.
  • Net earnings are expected to be within a range of $3.87 to $4.24 per diluted share.

Headwinds

  • The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 0% to 3% in 2023.
  • The acquisitions of Santroll’s light vehicle eMotor business, Rhombus Energy Solutions, Drivetek and the electric vehicle solution, smart grid and smart energy businesses of Hubei Surpass Sun Electric are expected to increase year-over-year sales by an aggregate of approximately $70 million.
  • Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 10.0% to 10.4%.
  • Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $4.60 to $5.15 per diluted share.
  • Full-year operating cash flow is expected to be in the range of $1,400 million to $1,550 million, while free cash flow is expected to be in the range of $550 million to $650 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.6%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.7%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+22.5%

Q4 2025

Best reaction

-11.1%

Q2 2008

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+10.2%+26.9%
Q4 2025+22.5%+16.3%-6.3%
Q3 2025+3.2%+3.0%+0.5%
Q1 2025+4.7%+12.5%+11.4%
Q4 2024-3.0%-5.6%-4.4%
Q3 2024-0.3%+1.4%+2.3%
Q2 2024+4.9%-0.2%+5.0%
Q1 2024+10.9%+12.0%+8.5%
Q4 2023-6.0%-8.2%-5.3%
Q3 2023-10.1%-12.1%-8.5%
Q2 2023-10.9%-8.8%-11.1%
Q1 2023-4.0%-4.2%+2.6%
Q4 2022+3.6%+6.6%+2.8%
Q3 2022+3.5%+2.1%+15.6%
Q2 2022-0.5%-0.3%-4.0%
Q1 2022-0.1%-3.5%+3.0%
Q4 2021+5.8%+1.9%-10.3%
Q3 2021-1.0%-0.6%-6.7%
Q2 2021-5.8%-7.7%-12.6%
Q1 2021+7.7%+9.1%+12.3%
Q4 2020-3.9%+0.2%+15.2%
Q3 2020-4.6%-0.8%+7.8%
Q2 2020+4.1%+9.0%+13.2%
Q1 2020+3.3%+8.5%+38.3%
Q4 2019-1.5%-1.0%-26.0%
Q3 2019+11.2%+14.9%+7.2%
Q2 2019-7.8%-10.4%-27.3%
Q1 2019-2.4%-4.1%-18.2%
Q4 2018+3.8%+3.5%-6.4%
Q3 2018+6.3%+8.7%+10.3%
Q2 2018+4.1%+4.5%+0.9%
Q1 2018-6.2%-8.3%-2.7%
Q4 2017-4.3%-4.9%-6.3%
Q3 2017+2.3%+2.1%+2.4%
Q2 2017+2.3%-0.1%-3.7%
Q1 2017+3.0%-0.4%-0.2%
Q4 2016+2.9%+2.6%+3.3%
Q3 2016+0.7%-0.3%+0.8%
Q2 2016-3.0%-6.1%-1.6%
Q1 2016-7.0%
Q4 2015+4.6%
Q3 2015-6.0%
Q2 2015-5.2%
Q1 2015-2.3%
Q4 2014+3.7%
Q3 2014+0.3%
Q2 2014-5.6%
Q1 2014-2.4%
Q4 2013+4.5%
Q3 2013-1.7%
Q2 2013+0.4%
Q1 2013+3.7%
Q4 2012+1.2%
Q3 2012+4.9%
Q2 2012-0.3%
Q1 2012-0.9%
Q4 2011+2.2%
Q3 2011-0.2%
Q2 2011+11.1%
Q1 2011+3.1%
Q4 2009+7.4%
Q4 2010+7.4%
Q3 2010+3.7%
Q2 2010+8.5%
Q1 2009+8.5%
Q1 2010+5.4%
Q4 2007+1.1%
Q3 2008-3.1%
Q3 2009-3.1%
Q4 2008-11.1%
Q2 2009-11.1%
Q2 2008-11.1%

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