Westport Q4 Loss Wider Than Expected, Revenues Decline Y/Y

Westport Fuel Systems Inc. WPRT reported a loss of 59 cents per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 81 cents in the year-ago period.See the Zacks Earnings Calendar to stay ahead of market-making news.WPRT registered consolidated revenues of $75.1 million, surpassing the Zacks Consensus Estimate of $72 million. The top line, however, fell from $87.2 million generated in the corresponding quarter of 2023. The company incurred an adjusted EBITDA loss of $1.8 million compared with a loss of $10 million recorded in the year-ago period.Westport Fuel Systems Inc. Price, Consensus and EPS Surprise Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. QuoteSegmental TakeawaysFrom the third quarter of 2024, Westport has started reporting its results under four reportable segments: Cespira, Light-Duty, High-Pressure Controls and Systems and Heavy-Duty OEM. Cespira is Westport’s HPDI joint venture with Volvo Group.Cespira: The segment reported net sales of $22.8 million and incurred an operating loss of $4.8 million in the fourth quarter of 2024.Light-Duty: Net sales of the segment totaled $68 million, which increased from $63.4 million in the fourth quarter of 2023 and surpassed our estimate of $56.8 billion. The upside was mainly due to higher sales of LPG fuel system solutions to a global original equipment manufacturer (OEM).Gross profit rose to $14 million (21% of revenues) from the year-ago period’s $12 million (19% of revenues), primarily due to an increase in sales volumes, a change in sales mix with higher sales to European customers and lower sales in developing regions.High-Pressure Controls and Systems: Net sales of the segment totaled $1.4 million compared with $2.5 million in the year-ago period. The figure missed our estimate of $1.9 million. A slowdown in hydrogen infrastructure development has resulted in slower adoption of hydrogen-powered solutions in the automotive and industrial sectors, which has resulted in a year-over-year decline. In the reported quarter, gross profit was 0% of revenues due to lower sales volume. The company’s gross profit was $0.4 million or 16% of revenues in the fourth quarter of 2023.Heavy-Duty OEM: In the reported quarter, net sales of the segment, which includes revenues from the business, totaled $5.7 million. The company reported $21.3 million in the year-ago quarter. The metric missed our estimate of $13.7 million. The year-over-year decline resulted from the continuation of the business in Cespira.Gross profit totaled $4.7 million (5% of revenues) against a gross loss of $4.4 million in the fourth quarter of 2023.FinancialsWestport had cash and cash equivalents (including restricted cash) of $37.6 million as of Dec. 31, 2024, down from $54.85 million at the end of 2023. Long-term debt decreased to $19 million as of Dec. 31, 2024, from $30.96 million as of Dec. 31, 2023.WPRT’s Zacks Rank & Key PicksWestport carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Suzuki Motor Corporation SZKMY and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days. The Zacks Consensus Estimate for SZKMY’s 2025 sales and earnings implies year-over-year growth of 8.59% and 48.43%, respectively. EPS estimates for 2025 and 2026 have improved 56 cents and 39 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Suzuki Motor (SZKMY): Free Stock Analysis Report China Yuchai International Limited (CYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks