Why Shares of BorgWarner Surged in August
Shares of automotive technology company BorgWarner (NYSE: BWA) rose 10.9% in August, according to data provided by S&P Global Market Intelligence. The rise comes as a consequence of a combination of a slightly better outlook for automotive production in 2020 and a demonstration of the company's ability to outgrow its end markets.
The change in expectations for BorgWarner's end markets and sales can be seen in the updated management guidance given in the second-quarter earnings call on Aug. 5. By way of reference, by "end markets," BorgWarner means the change in light-vehicle production weighted for its geographic exposure, so it's not a direct marker of global light-vehicle production. On the other hand, it provides investors with a useful way to benchmark the company's ability to grow more than its end markets.
Full-Year 2020 Guidance
Source Fool.com
