Wall Street's Skepticism About BorgWarner's Future May Still Mean Opportunity
Stephen Simpson, CFA
Stephen Simpson, CFA
Lost Credibility And Shifting Priorities Hammer BorgWarner
Stephen Simpson, CFA
Stephen Simpson, CFA
Today, 8:01 AM
Yesterday, 5:30 PM
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Tue, Oct. 11, 9:33 AM
- The German Bundesrat has fired a warning shot across the automobile industry that is yet another indication that seismic changes could be coming down the road.
- In a vote intended to pressure the EU, the Bundesrat approved a measure to ban gas and diesel vehicles by 2030. The Bundesrat doesn't set policy across Europe, but is considered influential.
- Naturally, the fact that the push is coming from the home of Mercedes, BMW, and Volkswagen also adds a degree of intrigue to the news and the underlying electrification push out of the trio.
- Wall Street analysts with their 1-year price target mindset haven't weighed in on the development, but there's plenty of discussion on Seeking Alpha about the implications.
- Previously: Germany says nein to internal combustion engines (Oct. 10)
- Related auto parts stocks: ACW, ALSN, ALV, AXL, BWA, CAAS, CPS, DAN, DLPH, DORM, FDML, FENX, GNTX, JCI, LDL, LEA, LKQ, MBLY, MLR, MNRO, MOD, MPAA, MPG, MTOR, PLOW, SMP, SRI, STRT, SUP, STRT, TEN, THRM, TEN, TOWR, UFAB, VC, VOXX, WBC, ZX.
Mon, Oct. 3, 8:56 AM| Mon, Oct. 3, 8:56 AM
Wed, Aug. 31, 10:26 AM
- U.S. auto sales are expected to show a decline of 2% to 5% for August amid a dialing back of discounting activity, according to the range of forecasts from Kelley Blue Book, Edmunds, J.D. Power, and LMC Automotive. General Motors is poised to report a loss of market share as its plan to cut out fleet sales impacts volume.
- Bloomberg estimates the seasonally adjusted selling rate for the month will be 17.2M, down from 17.9M last month.
- The sales dip isn't necessarily a bottom line drag for the sector due to reduced discounting and the increasing mix of higher-profit SUVs and trucks. But higher profit hasn't lifted automaker stocks this year, with the group having trouble gaining traction and trading with low forward PE multiples (GM 5.5, Ford 6.8, Honda 10.5, Toyota 10.9).
- Auto parts stocks (LEA, TEN, BWA, DAN, MPAA, CPS, DLPH, AXL, TOWR, ACW, FENX, MTOR, THRM, SMP, ALV, MOD, SRI) will be on watch tomorrow when the reports roll in as the sector frequently sees some extra volatility on days U.S. auto sales are disclosed.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE.
Tue, Aug. 16, 9:35 AM
- Ford (NYSE:F) says it will make an announcement at 2:00 p.m. EDT to discuss the company's expanding presence in Silicon Valley and autonomous vehicle development.
- The automaker will also host a conference call with analysts at 4:00 p.m. to discuss its smart mobility ambitions. The roster of Ford execs on the call include global development and technology heavyweights.
- Earlier today on CNBC, CEO Mark Fields joined the group of leaders predicting a seismic change in the automobile industry.
- "Our view is autonomous vehicles could have just as much [of an] impact on society as Ford's moving assembly line did 100 years ago," Fields noted. In an important revelation, Fields says more customers are telling the company that they are interested in the autonomous driving option -- an anecdote that runs counter to the view of some that drivers don't want to give up the wheel (partially or fully).
- Field hinted that the scheduled autonomous announcement for today will be significant. It's a development that could have some bearing on the self-driving plans of General Motors (NYSE:GM), Audi (OTCPK:VLKAY), Tesla Motors (NASDAQ:TSLA), Nissan (OTCPK:NSANY), and Toyota (NYSE:TM). Lyft (Private:LYFT) and Uber (Private:UBER) are also feeling their way around the autonomous driving landscape. Plenty of auto suppliers such as Mobileye (NYSE:MBLY), Autoliv (NYSE:ALV), BorgWarner (NYSE:BWA), Tenneco (NYSE:TEN), Dana (NYSE:DAN), STMicroelectronics (NYSE:STM), and Delphi Automotive (NYSE:DLPH) will also be listening intently to details on Ford's plans.
- Previously: Ford pushes the accelerator on autonomous vehicles (Aug. 16)
Tue, Aug. 2, 10:33 AM
- Auto parts stocks after lower after Detroit automakers disappoint with July U.S. sales growth.
- The sector has been on watch since last week when Ford warned on a plateauing of the U.S. automobile market.
- Leading decliners include Lear (LEA -4.7%), Tenneco (TEN -3.8%), BorgWarner (BWA -3.8%), Dana Holding (DAN -3.2%), Motorcar Parts of America (MPAA -3.3%), Cooper-Standard Holdings (CPS -2.9%), and Delphi Automotive (DLPH -2.4%).
Thu, Jul. 28, 8:07 AM
Wed, Jul. 27, 5:30 PM
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Tue, Jul. 26, 4:45 PM
Thu, Jul. 21, 11:57 AM
- Auto parts stocks are rallying after strong reports from Dana Holding (DAN +9.7%), Johnson Controls (JCI +3.4%), and General Motors.
- GM showed strong results in North America and issued reassuring guidance, while both Dana and Johnson beat on the top line.
- Sector movers: BorgWarner (BWA +2%), Accuride (ACW +3.2%), Fenix Parts (FENX +4.8%), Tenneco (TEN +3.6%), Westport Fuel Systems (WPRT +4%), Cooper-Standard Holdings (CPS +2.8%), and Meritor (MTOR +2.2%).
- Previously: GM +4% as profit surges, full-year guidance raised (July 21)
- Previously: More on Dana Holding's Q2 (July 21)
Tue, Jun. 21, 1:53 PM
- BorgWarner (BWA -4.1%) tumbles after BofA Merrill Lynch downgrades shares to Neutral from Buy, saying the company looks set to suffer from muted revenue and profit growth going forward.
- The downgrade is just one of several among auto parts suppliers amid lower than expected U.S. auto sales this year, as BofA cuts its 2016 U.S. auto sales estimate to 17.7M from an earlier view of 18.2M.
- In addition to BWA, the firm also downgrades American Axle (AXL -6%), Lear (LEA -3.5%) and Metaldyne (MPG -5.9%) to Neutral from Buy, and Cooper-Standard (CPS -3.6%) to Underperform from Neutral.
- BofA adds that investor sentiment towards the auto supplier sector has become more negative, meaning that all the downgraded stocks likely will trade at relatively low multiples.
Wed, Jun. 1, 10:14 AM
- Auto parts stocks are under pressure after the Detroit Three all showed a slowing U.S. sales trend in May.
- The month included two fewer selling days which impacted the unadjusted tally, although demand for passenger cars in particular still came in weak.
- Notable decliners include BorgWarner (BWA -3.3%), Tower International (TOWR -4%), American Axle & Manufacturing (AXL -2.4%), Lear (LEA -2.5%), Delphi Automotive (DLPH -2.4%), and Dana Holding (DAN -1.8%).
Thu, Apr. 28, 8:08 AM
- BorgWarner (NYSE:BWA): Q1 EPS of $0.80 beats by $0.02.
- Revenue of $2.27B (+14.6% Y/Y) beats by $40M.
Wed, Apr. 27, 5:30 PM
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Wed, Apr. 27, 4:53 PM
- BorgWarner (NYSE:BWA) declares $0.13/share quarterly dividend, in line with previous.
- Forward yield 1.35%
- Payable June 15; for shareholders of record June 1; ex-div May 27.