Westport Fuel Systems Inc. (TSE:WPRT) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Simply Wall St.
03 Apr

It's been a mediocre week for Westport Fuel Systems Inc. (TSE:WPRT) shareholders, with the stock dropping 16% to CA$4.86 in the week since its latest full-year results. It was a pretty bad result overall; while revenues were in line with expectations at US$302m, statutory losses exploded to US$1.27 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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TSX:WPRT Earnings and Revenue Growth April 3rd 2025

Following the recent earnings report, the consensus from four analysts covering Westport Fuel Systems is for revenues of US$219.8m in 2025. This implies a substantial 27% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 35% to US$0.82. Before this latest report, the consensus had been expecting revenues of US$292.6m and US$0.73 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

View our latest analysis for Westport Fuel Systems

There was no major change to the consensus price target of CA$99.98, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Westport Fuel Systems' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 27% by the end of 2025. This indicates a significant reduction from annual growth of 3.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.3% per year. It's pretty clear that Westport Fuel Systems' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CA$99.98, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Westport Fuel Systems going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Westport Fuel Systems , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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