Share price of Westport Innovations Inc. WPRT dropped 6.5% to $2.72 on Mar 30, 2016 after the company reported a loss of 35 cents per share in the fourth quarter of 2015, narrower than a loss of $1.02 recorded in the prior-year quarter. However, the loss was much wider than the Zacks Consensus Estimate of a loss of 25 cents. Net loss amounted to $23.3 million, significantly wider than $64.9 million recorded in the fourth quarter of 2014.
Consolidated revenue for the Westport Operations and Corporate & Technology Investments segments was $25.1 million in the fourth quarter of 2015, down 9.5% year over year owing to unfavorable foreign currency translation and weakness in the North American Ford business. Moreover, the figure missed the Zacks Consensus Estimate of $31 million.
Consolidated gross margin was $3.6 million (14.5% of sales) in fourth-quarter 2015, compared with negative gross margin of $1.2 million (4.4% of sales) in the year-ago quarter.
Consolidated adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) amounted to a negative $12.3 million, narrower than $23 million in the fourth quarter of 2014.
Full-Year 2015 Performance
Westport Innovations reported a loss of $1.53 per share in 2015, narrower than a loss of $2.37 incurred in 2014. However, the loss was wider than the Zacks Consensus Estimate of a loss of $1.42.
Consolidated revenue for the Westport Operations and Corporate & Technology Investments segments was $103.3 million in 2015, down 20.9% from $130.6 million in the prior year.
Segment Details
Westport Operations recorded a 1.8% decrease in revenues to $26.6 million. Operating loss in the segment narrowed to $2.9 million in the reported quarter from $13.3 million in the fourth quarter of 2014.
Corporate and Technology Investments reported negative revenues of $1.4 million. Operating loss amounted to $20.3 million compared with a loss of $23.3 million recorded a year ago.
The CWI joint venture (JV) recorded a 22.1% decrease in revenues to $83.4 million, mainly due to a decline in volumes related to macroeconomic conditions and weakness in the international markets owing to a strong U.S. dollar. CWI operating income in the reported quarter was $11.9 million compared with $20.8 million in the year-ago period. The decline was owing to a fall in revenues along with favorable warranty adjustment in the fourth quarter of 2014 which was not there in the current quarter.
The Weichai Westport Inc. (“WWI”) JV reported a 71.7% plunge in revenues to $54.6 million. Operating income from WWI was $1.8 million compared with $12.2 million in the prior-year quarter.
Financial Position
Westport Innovations had cash, cash equivalents and short term investments of $27.8 million as of Dec 31, 2015, down from $94 million as of Dec 31, 2014. Long-term debt was $62.4 million as of Dec 31, 2015, down from $76.7 million as of Dec 31, 2014.
For 2015, Westport Innovations’ cash used in operations was $69.1 million, compared with $106.8 million in the prior year.
Zacks Rank
Winnebago currently carries a Zacks Rank #3 (Hold).
Some better-ranked automobile stocks include Wabash National Corp. WNC, Federal-Mogul Holdings Corporation FDML and Superior Industries International, Inc. SUP. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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