Zacks Research Comments on BorgWarner Inc.’s FY2025 Earnings (NYSE:BWA)

BorgWarner Inc. (NYSE:BWA) – Equities research analysts at Zacks Research lifted their FY2025 earnings per share estimates for BorgWarner in a research note issued to investors on Monday, June 17th. Zacks Research analyst R. Department now anticipates that the auto parts company will earn $4.82 per share for the year, up from their prior forecast of $4.35. The consensus estimate for BorgWarner’s current full-year earnings is $4.07 per share. Zacks Research also issued estimates for BorgWarner’s Q4 2025 earnings at $1.28 EPS and FY2026 earnings at $5.35 EPS.

A number of other analysts have also recently issued reports on BWA. Piper Sandler initiated coverage on BorgWarner in a research report on Friday, March 15th. They set an “overweight” rating and a $43.00 price objective for the company. Citigroup raised their target price on BorgWarner from $33.00 to $41.00 and gave the company a “neutral” rating in a report on Monday, May 6th. Oppenheimer raised their target price on BorgWarner from $39.00 to $40.00 and gave the company an “outperform” rating in a report on Friday, May 3rd. StockNews.com upgraded BorgWarner from a “hold” rating to a “buy” rating in a report on Monday, May 6th. Finally, TD Cowen raised their target price on BorgWarner from $36.00 to $40.00 and gave the company a “buy” rating in a report on Friday, May 3rd. Seven investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $43.76.

BorgWarner Price Performance

BWA opened at $33.01 on Wednesday. The stock has a market cap of $7.52 billion, a price-to-earnings ratio of 12.50, a PEG ratio of 0.80 and a beta of 1.28. BorgWarner has a 1 year low of $29.51 and a 1 year high of $50.04. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. The stock has a fifty day moving average price of $34.83 and a 200 day moving average price of $33.86.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.87 by $0.16. The company had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.09 earnings per share.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 17th. Investors of record on Monday, June 3rd were paid a dividend of $0.11 per share. The ex-dividend date was Monday, June 3rd. This represents a $0.44 annualized dividend and a yield of 1.33%. BorgWarner’s dividend payout ratio is 16.67%.

BorgWarner declared that its Board of Directors has approved a stock repurchase program on Thursday, May 2nd that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On BorgWarner

Several institutional investors and hedge funds have recently added to or reduced their stakes in BWA. Rafferty Asset Management LLC boosted its holdings in BorgWarner by 30.1% during the third quarter. Rafferty Asset Management LLC now owns 29,452 shares of the auto parts company’s stock valued at $1,189,000 after purchasing an additional 6,808 shares in the last quarter. Korea Investment CORP boosted its holdings in BorgWarner by 7.8% during the third quarter. Korea Investment CORP now owns 106,464 shares of the auto parts company’s stock valued at $4,298,000 after purchasing an additional 7,677 shares in the last quarter. Envestnet Portfolio Solutions Inc. acquired a new stake in BorgWarner during the third quarter valued at approximately $487,000. Invesco Ltd. boosted its holdings in BorgWarner by 30.4% during the third quarter. Invesco Ltd. now owns 4,399,084 shares of the auto parts company’s stock valued at $177,591,000 after purchasing an additional 1,024,361 shares in the last quarter. Finally, Aigen Investment Management LP acquired a new stake in BorgWarner during the third quarter valued at approximately $784,000. 95.67% of the stock is currently owned by institutional investors.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.