BorgWarner (NYSE:BWA) Posts Quarterly Earnings Results, Beats Expectations By $0.14 EPS

BorgWarner (NYSE:BWA) issued its earnings results on Wednesday. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14, FiscalAI reports. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter in the previous year, the company earned $1.21 EPS. The firm’s revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner updated its FY 2026 guidance to 5.050-5.300 EPS.

BorgWarner Trading Up 5.6%

Shares of BWA traded up $3.50 on Wednesday, reaching $66.54. 2,048,093 shares of the company’s stock were exchanged, compared to its average volume of 2,865,634. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $13.65 billion, a P/E ratio of 39.36, a price-to-earnings-growth ratio of 1.35 and a beta of 1.10. The business has a 50 day moving average price of $67.82 and a two-hundred day moving average price of $59.83. BorgWarner has a 12 month low of $37.84 and a 12 month high of $78.82.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner’s payout ratio is currently 40.24%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on BWA shares. Barclays raised their price target on BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and increased their target price for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Wall Street Zen raised BorgWarner from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. Wolfe Research reiterated an “outperform” rating and set a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $84.00 price objective on shares of BorgWarner in a research report on Thursday, June 11th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $74.57.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the completion of the sale, the chief executive officer owned 405,964 shares of the company’s stock, valued at approximately $27,325,436.84. The trade was a 6.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Isabelle Mckenzie sold 3,500 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total transaction of $221,725.00. Following the sale, the vice president owned 57,828 shares of the company’s stock, valued at $3,663,403.80. The trade was a 5.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 67,500 shares of company stock valued at $4,310,115 in the last three months. Insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. AQR Capital Management LLC increased its stake in shares of BorgWarner by 119.7% in the 3rd quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock valued at $330,525,000 after acquiring an additional 4,095,902 shares during the last quarter. Millennium Management LLC grew its holdings in BorgWarner by 94.5% during the fourth quarter. Millennium Management LLC now owns 2,100,815 shares of the auto parts company’s stock valued at $94,663,000 after purchasing an additional 1,020,726 shares during the period. Adage Capital Partners GP L.L.C. increased its stake in BorgWarner by 233.6% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock valued at $37,196,000 after purchasing an additional 778,000 shares in the last quarter. Electron Capital Partners LLC acquired a new stake in BorgWarner in the third quarter worth $31,820,000. Finally, Balyasny Asset Management L.P. acquired a new stake in BorgWarner in the second quarter worth $22,590,000. Institutional investors own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.