Analyst Note| Richard Hilgert |
BorgWarner reported third-quarter earnings per share before special items of $0.88, ahead of the $0.79 CapIQ consensus EPS estimate by $0.09 but $0.08 below the year-ago result due to a higher effective tax rate. Consolidated revenue returned to growth, increasing 1.7% to $2.5 billion but would have been up 0.8% excluding favorable currency effect. Sequentially from second to third quarter, revenue rebounded 78%. Adjusted EBIT was $317 million with a margin of 12.5% versus $294 million and an 11.8% margin reported last year, a solid result considering the lingering effects of coronavirus. The acquisition of Delphi was closed on the first day of the fourth quarter and is not included in third-quarter results, except for $16 million in merger related expenses excluded from adjusted EBIT.