NYSE$BWA

BorgWarner Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

BorgWarner's Q3 2022 results increased compared to Q3 2021.

BorgWarner reported a strong third quarter with a 19% increase in net sales compared to the same period last year. The company's adjusted earnings per diluted share also increased, driven by customer pricing actions and higher revenue, partially offset by inflationary impacts and increased R&D investment. BorgWarner is on track to achieve $4 billion in electric vehicle revenue by 2025 and updated its full year sales, margin, and EPS guidance.

  • Net sales reached $4,060 million, a 19% increase compared to Q3 2021.
  • Organic sales were up 29% compared to Q3 2021, excluding the impact of foreign currencies, acquisitions, and divestitures.
  • U.S. GAAP net earnings were $1.16 per diluted share, with adjusted net earnings at $1.24 per diluted share.
  • The company believes it is already on track to achieve approximately $4 billion of electric vehicle revenue by 2025.

Headline financials

Total Revenue

$4.06B

Previous: $3.42B+18.9%
EPS (adj)

$1.24

Previous: $0.80+55.0%
Adjusted Operating Income

$438M

No prior period
Adjusted Operating Margin

10.8%

Previous: 9.1%+18.7%
Free Cash Flow

$273M

Previous: $96M+184.4%
Net Income

$273M

Previous: $96M+184.4%
Operating Income

$389M

Previous: $253M+53.8%
Gross Profit

$806M

Previous: $650M+24.0%
Cash & Equivalents

$1.24B

Previous: $1.51B-17.7%
Total Assets

$16.1B

Previous: $16.5B-2.5%
Stock-Based Comp

$15M

Previous: $15M+0.0%

Revenue & EPS history

BorgWarner · Revenue · Quarterly

$4.06B

Q3 2022+18.9%vs Q3 2021
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 $15.4 billion to $15.7 billion.
  • Implies a year-over-year increase in organic sales of 12% to 14%.
  • Operating margin for the full year is expected to be in the range of 8.6% to 8.9%.
  • Adjusted operating margin is expected to be in the range of 10.0% to 10.2%.
  • Net earnings are expected to be within a range of $3.71 to $3.91 per diluted share.

Headwinds

  • Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $1 billion.
  • The divestiture of the Water Valley, Mississippi business will decrease year-over-year sales by approximately $177 million.
  • Net earnings are expected to be within a range of $3.71 to $3.91 per diluted share.
  • Full-year operating cash flow is expected to be in the range of $1,450 million to $1,500 million.
  • Free cash flow is expected to be in the range of $650 million to $750 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 Q3 2022

Historical avgQ3 2022

+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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