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In a challenging market environment, BorgWarner Inc. (NYSE:BWA) stock has reached its 52-week low, trading at $27.64. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.79 and has consistently paid dividends for 13 consecutive years. The automotive industry supplier, known for its innovative powertrain components, has faced headwinds that have pressured the stock downward, reflecting a broader trend in the sector. Over the past year, BorgWarner has seen its stock value decrease by 19.72%, as investors weigh the impact of global supply chain issues and shifting demand within the auto industry. The 52-week low marks a critical point for the company as it navigates through these industry disruptions and aims to position itself for recovery. Notably, analysts maintain a positive outlook, with significant upside potential from current levels, while management demonstrates confidence through aggressive share buybacks. For detailed analysis and additional insights, explore BorgWarner’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, BorgWarner reported fourth-quarter earnings that exceeded analyst expectations, with an adjusted earnings per share (EPS) of $1.01, surpassing the consensus estimate of $0.96. However, the company’s revenue fell by 2% to $3.44 billion, slightly missing the consensus by $30 million. Despite these mixed results, BorgWarner’s adjusted operating margin reached 10.2% during the fourth quarter. Looking ahead to 2025, BorgWarner provided an earnings per share outlook of $4.05 to $4.40, which is below the analyst estimate of $4.23, and projected revenue in the range of $13.4 billion to $14 billion, falling short of the $14.12 billion consensus. CFRA analyst Garrett Nelson revised BorgWarner’s 12-month price target to $32 from $35 while maintaining a Hold rating, citing potential challenges from a slowdown in electric vehicle demand growth and other industry pressures. Nelson also adjusted the company’s 2025 adjusted EPS estimate to $4.30 from $4.65. Despite these challenges, BorgWarner secured multiple new business awards, including Variable Cam Timing systems and turbocharger program extensions, which are expected to support future growth.
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