Why Investors Hit the Brakes on BorgWarner's Stock This Week
Beating analysts' revenue estimates, (NYSE: BWA) reported a year-over-year increase in revenue of 8% for the first quarter of 2023. Investors, however, weren't impressed. Instead, they were more focused on the fact that the auto parts supplier failed to meet expectations on the bottom of the income statement. And that's not all. Some details in the company's 2023 forecast signaled a yellow flag to investors, leading to a sell-off in the stock.
As of the end of trading on Thursday, shares of BorgWarner are down 11.1% since the end of last Friday's session, according to data provided by S&P Global Market Intelligence.
Reporting adjusted earnings per share of $1.08, BorgWarner failed to meet analysts' expectations of $1.11. During the quarter, BorgWarner recognized a contraction in its gross margin -- from 19.4% in Q1 2022 to 17.9% in Q1 2023 -- due to higher material costs and unfavorable foreign currency rates.
Source Fool.com
Borgwarner Inc. Stock
The stock is an absolute favorite of our community with 25 Buy predictions and no Sell predictions.
As a result the target price of 41 € shows a positive potential of 38.21% compared to the current price of 29.67 € for Borgwarner Inc..
