BorgWarner Q3 Results Improve, 2022 Guidance Tweaked; Slight FVE Increase to $78

Narrow-moat-rated BorgWarner reported third-quarter earnings per share before special items, or EPS, of $1.24, beating the FactSet consensus by $0.20 and $0.44 higher than last year. Revenue rose 19% to $4.1 billion from $3.4 billion a year ago when the chip shortage was at its worst. Excluding negative currency, divestitures, and acquisitions, organic revenue jumped 29%, outperforming a 22% increase in global light-vehicle production, or LVP, weighted to BorgWarner's customer base, by 7% points on new business and customer price recoveries for raw materials. We maintain our investment thesis that BorgWarner will increase revenue at above-market rates as its products reduce emissions and support vehicle electrification.