BorgWarner (NYSE: BWA) reported Q4 EPS of $1.17, $0.15 better than the analyst estimate of $1.02. Revenue for the quarter came in at $2.56 billion versus the consensus estimate of $2.49 billion.

GUIDANCE:

BorgWarner sees FY2020 EPS of $3.85-$4.15, versus the consensus of $4.01.

• The company has provided 2020 full year guidance. This guidance is for BorgWarner as currently consolidated and excludes the potential impact from the acquisition of Delphi Technologies PLC, which BorgWarner announced on January 28, 2020. Net sales are expected to be in the range of $9,750 million to $10,075 million. This implies year-over-year organic sales change of down 2.5% to up 0.5%. The company expects its blended light-vehicle market to decline in the range of 2.0% to 4.0% in 2020. Global light vehicle production expectations remain volatile, particularly in China. Foreign currencies are expected to result in a year-over-year decrease in sales of $130 million, primarily due to the depreciation of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar. The divestiture of the thermostat product line will decrease year-over-year sales by approximately $30 million. Operating margin is expected to be in the range of 10.0% to 11.0%. Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 11.6% to 12.0%. Net earnings are expected to be within a range of $3.22 to $3.75 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $3.85 to $4.15 per diluted share. Full-year operating cash flow is expected to be approximately $1,250 million, while free cash flow is expected to be in the range of $675 million to $725 million

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