Caesars Entertainment misses Q2 earnings expectations, shares edge lower
In a challenging market environment, BorgWarner Inc. (NYSE:BWA) stock has touched a 52-week low, dipping to $28.64. The automotive industry supplier, known for its innovative powertrain components, has faced headwinds that have pressured its stock price over the past year. According to InvestingPro analysis, the company appears undervalued at current levels, with management actively buying back shares. The company maintains solid fundamentals with a healthy current ratio of 1.79 and annual revenue of $14.09 billion. Despite the broader industry’s push towards electrification and sustainable mobility solutions, BorgWarner’s stock has not been immune to the market’s volatility. This recent price level reflects a notable decline from previous periods, with the stock experiencing a 1-year change of -6.78%, underscoring the hurdles the company has encountered in maintaining its stock value amidst shifting investor sentiment and industry dynamics. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of BWA’s market position and growth potential.
In other recent news, BorgWarner Inc. reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $1.01, compared to the consensus estimate of $0.95. Revenue for the quarter was $3.44 billion, slightly surpassing the expected $3.43 billion, despite a 2.4% year-over-year decline. The company provided a mixed outlook for 2025, projecting earnings per share between $4.05 and $4.40, which is below the analyst estimate of $4.23. BorgWarner anticipates revenue for 2025 to be between $13.4 billion and $14 billion, falling short of the $14.12 billion consensus.
CFRA analyst Garrett Nelson adjusted BorgWarner’s 12-month price target to $32, down from $35, while maintaining a Hold rating on the stock. Nelson cited concerns about a slowdown in electric vehicle demand and potential pressures from elevated inventory levels and possible tariffs. BorgWarner’s own guidance for 2025 adjusted EPS is in the range of $4.05 to $4.40, which is lower than the consensus of $4.48. Despite these challenges, the company reported securing new business awards, including Variable Cam Timing systems and turbocharger program extensions, which may support future growth.
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