NYSE$BWA

BorgWarner Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

BorgWarner reported a decrease in net sales but an increase in operating income for Q4 2019.

BorgWarner's Q4 2019 results showed a slight decrease in net sales, but operating income increased significantly due to a gain on the derecognition of a subsidiary. Adjusted net earnings per share decreased compared to the previous year.

  • Net sales decreased by 0.6% compared to Q4 2018.
  • Net earnings per diluted share were $1.06.
  • Operating income increased to $478 million, or 18.7% of net sales.
  • Adjusted net earnings per share were $1.17, excluding non-comparable items.

Headline financials

Total Revenue

$2.56B

Previous: $2.57B-0.5%
EPS (adj)

$1.17

Previous: $1.21-3.3%
Net Income

$220M

Previous: $230M-4.3%
Operating Income

$478M

Previous: $266M+80.0%
Gross Profit

$545M

Previous: $543M+0.4%
Cash & Equivalents

$832M

Previous: $739M+12.6%
Total Assets

$9.7B

Previous: $10.1B-3.9%
Stock-Based Comp

$12M

Previous: $15.3M-21.6%

Revenue & EPS history

BorgWarner · Revenue · Quarterly

$2.56B

Q4 2019-0.5%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company provided full year 2020 guidance, excluding the potential impact from the acquisition of Delphi Technologies PLC. Net sales are expected to be in the range of $9,750 million to $10,075 million, with adjusted net earnings expected to be within a range of $3.85 to $4.15 per diluted share.

Tailwinds

  • Implies year-over-year organic sales change of down 2.5% to up 0.5%.
  • Operating margin is expected to be in the range of 10.0% to 11.0%.
  • Adjusted operating margin is expected to be in the range of 11.6% to 12.0%.
  • Full-year operating cash flow is expected to be approximately $1,250 million.
  • Free cash flow is expected to be in the range of $675 million to $725 million.

Headwinds

  • Net sales are expected to be in the range of $9,750 million to $10,075 million.
  • Blended light-vehicle market to decline in the range of 2.0% to 4.0% in 2020.
  • Global light vehicle production expectations remain volatile, particularly in China.
  • Foreign currencies are expected to result in a year-over-year decrease in sales of $130 million.
  • The divestiture of the thermostat product line will decrease year-over-year sales by approximately $30 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 Q4 2019

Historical avgQ4 2019

+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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