The stock has been 'hanging around' for most of 2011, as the sector has fallen out of favor with the investor class. Most recently after creating a double top with April and July highs, the stock has been beaten quite badly but is reversing that in dramatic fashion this morning.
- Auto parts supplier BorgWarner Inc (BWA) reported a higher-than-expected quarterly profit on Thursday, driven by increased demand for its fuel-economy technologies. The company, which makes turbochargers, transmission components and other parts, also raised its forecast for 2011 earnings and revenue. It now expects $4.25 to $4.45 per share on an adjusted basis, on a revenue increase of 25 percent to 28 percent. It previously forecast 2011 earnings of $3.85 to $4.15 per share on a revenue rise of 19 percent to 23 percent.
- BorgWarner has benefited from increased demand from automakers for its technology to improve engine efficiency and reduce emissions. That demand has been driven by high gas prices and a move toward stricter emissions standards by the U.S. government.
- Excluding a patent infringement settlement payment from Honeywell International Inc (HON) and an adjustment related to taxes, BorgWarner earned $1.12 per share in the latest quarter. On that basis, analysts' average forecast was 99 cents, according to Thomson Reuters I/B/E/S. Sales rose 28 percent to $1.8 billion.