Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – The S&P 500 index tracked auto parts supplier BorgWarner Inc. (NYSE:BWA) has been surging past competition and is trading close to 7.5 percent above its market valuation in the last week of trading. This surge was accomplished on the back of a strong end of the year, 4th quarter operation results announcement on 13th February. Following the better than expected results, a host of analyst firms and trading houses like Gabelli and RBC capital have weighed in favour of the stock by upgrading the stock and increased the price target.
The $13.21 billion market capped BorgWarner Inc. (NYSE:BWA) reported earnings per share of 79 cents for the fourth quarter. This was on back of a commendable 9.7 percent increase in the quarter revenue to $1.89 billion in comparison to 4Q12 revenue. It is also interesting to note here that the board of directors of the company had announced a dividend payout of $0.125 per share to be paid out on 17th February, for all share holders on record as of 3rd February.
Congratulating this staff for a blow out quarter, BorgWarner Inc. (NYSE:BWA) President, Chief Executive Officer, Director and Member of Executive Committee James R. Verrier has been quoted to have said that, “U.S. GAAP earnings were $0.62 per share, or $0.79 per share when we exclude non-comparable items. Our operating income margin, again, excluding non-comparable items, was an impressive 12.7% in the quarter and 2 key factors drove our strong results: solid sales growth in both the Engine and the Drivetrain segments.”
Its flag ship Engine segment saw its revenue for the quarter go up by 8 percent to $1.3 billion thanks to big expansion in its market in China, where as its Drivetrain segment grew faster at 10 percent in comparison to 4Q12. The north American and Korean geographies drove the growth engines for this segment.
