Westport Fuel Systems Inc. (NASDAQ: WPRT) released its second quarter earnings after close on Monday and beat all estimates that sent shares up over 12 percent.
Westport posted a revenue of $62.1 million for the quarter, which beat estimates by $3.66 million and posted an EPS of $-0.12, beating estimates by $0.03, according to SeekingAlpha.
Revenue is now up 40 percent year over year from last year’s previous quarter of $37.2 million. EPS is now down to $-0.12 compared to last year’s quarter of $0.04. Revenue was up mainly due to a merger with Fuel Systems, the company stated in the earnings call.
Net income for the quarter included a one-time non-cash gain of $42.9 million related to the merger. Excluding the gain, Westport Fuel Systems net loss would have been $39.5 million. As a result, net loss from continuing operations for the quarter improved by 66 percent compared to the same period last year.
"A year ago, we set a very specific goal to transform the company into a profitable and sustainable organization," said Nancy Gougarty, CEO of Westport Fuel Systems. "We have made substantial progress in meeting this goal and believe we now have the fundamentals in place to unlock the value of our technology, assets and people.”
“In the first year of the new leadership team, we have achieved $30 million of run-rate merger cost savings a year ahead of schedule; have sold non-core assets generating in excess of $100 million in cash; have improved Q2 2017 adjusted EBITDA by 54% compared to the same period last year; and are on track for the launch of the Westport High Pressure Direct Injection 2.0 ("WestportTM HPDI 2.0")," added Gougarty.
The Westport HPDI 2.0 is the only natural gas technology capable of delivering performance and fuel economy equivalent to that of current high performance diesel-fueled engines, but with diesel substitution of over 90 percent. This combination of high performance and high efficiency is critical for heavy-duty engines, according to Westport.
Due to the strong results, on August 8, Westport sent out offers to shareholders of its outstanding debentures to either sell or consent to the extension of the maturity date for another three years.
"The second quarter results are in line with our expectations, but further steps are being taken to align our operating costs with revenue," stated Gougarty. "We will continue to work with urgency and take actions that can deliver maximum value to customers, employees and shareholders."