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Conquest business win expands BorgWarner's depth in the on-highway commercial vehicle segment High-efficiency variable turbine geometry (VTG) turbocharger and exhaust gas recirculation (EGR) cooler will support a Euro 7-compliant, 6-cylinder heavy-duty diesel engine platform Jointly developed solutions are designed to support performance, fuel efficiency and emissions compliance for demanding long-haul truck applications , /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured conquest business with a major European commercial vehicle OEM to supply a high-efficiency VTG turbocharger and an EGR cooler for a Euro 7-compliant, 6-cylinder heavy-duty diesel engine platform. The award expands BorgWarner's depth in the on-highway commercial vehicle segment and further broadens its collaboration with the customer. Production is expected to begin at the end of 2028.

BorgWarner to Supply Turbocharger and EGR Cooler for Major European Commercial Vehicle OEM "We are pleased to further expand our relationship with this customer on our jointly developed turbocharger and EGR cooler business for a premium heavy-duty engine platform," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "This award reflects BorgWarner's ability to combine advanced technology, strong application engineering and competitive solutions to support demanding commercial vehicle applications. We look forward to bringing this jointly developed solution to market."

The awarded products are designed for a new Euro 7-compliant, 6-cylinder heavy-duty diesel engine for long-haul truck applications. BorgWarner's solution is intended to support a highly capable commercial vehicle platform while helping meet increasingly stringent emissions and fuel efficiency requirements.

The VTG turbocharger was developed specifically for the application and features a tailored cartridge and turbine housing design to meet the platform's performance requirements. Additional features include ball bearings to enhance transient response and support fuel efficiency, along with a high-efficiency compressor design optimized for demanding operating conditions. The EGR cooler incorporates an advanced internal plate design to improve thermal performance and exhaust gas recirculation efficiency, while a floating core architecture helps enhance durability under severe thermal cycling.

Manufactured at BorgWarner's facilities in Bradford, United Kingdom, and Vigo, Spain, the solution supports the customer's production strategy and reinforces BorgWarner's commitment to operational excellence and customer proximity.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our variable turbine geometry turbocharger and exhaust gas recirculation cooler will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

Key Takeaways BWA Q1 EPS of $1.24 beat estimates; revenues rose to $3.53B, though organic sales fell 4.2%.BorgWarner lifted margins via cost controls, FX gains, and restructuring; operating margin hit 9.5%.BWA secured 12 deals, eyes data center growth, and reaffirmed 2026 sales and EPS outlook. BorgWarner Inc. (BWA - Free Report) delivered adjusted earnings of $1.24 per share in the first quarter of 2026, beating the Zacks Consensus Estimate of $1.16 by 6.83%. Revenues of $3.53 billion topped the Zacks Consensus Estimate of $3.47 billion by 1.74% and increased 0.5% year over year.

While reported sales benefited from stronger foreign currencies, organic net sales fell 4.2% from the year-ago quarter’s level. Disciplined cost controls and the exit of the charging business helped support profitability in a softer production environment.

BWA’s Margin Gains Offset Softer Organic SalesProfits improved even though sales volumes were weak. On a U.S. GAAP basis, operating margin increased to 9.5% from 6.7% a year ago, while operating income rose from $237 million to $336 million. Gross margin also improved to 19.2% from 18.2%, aided by higher gross profit.

On an adjusted basis, operating margin reached 10.5%, up 50 basis points year over year, while adjusted operating income increased to $372 million from $352 million. Favorable currency movements, along with ongoing productivity gains and restructuring efforts, helped boost adjusted operating income compared with last year.

BorgWarner’s Segments Show Mixed Demand PatternsTurbos & Thermal Technologies revenues declined 1.4% year over year to $1.43 billion, while segment adjusted operating income dropped to $214 million from $235 million. The decline was mainly due to weaker demand for some core thermal products, partially offset by currency tailwinds.

Drivetrain & Morse Systems continued to be a steadier contributor, with sales rising 4.5% to $1.42 billion and segment adjusted operating income improving to $260 million from $243 million.

PowerDrive Systems posted revenues of $587 million, up 4.6%. However, the segment still posted a loss, though it narrowed to $36 million from $43 million last year.

Battery Energy Systems sales dropped to $102 million from $150 million. However, the segment’s loss improved significantly, narrowing to $2 million from $22 million last year.

BWA Expands Portfolio With New Awards and Data Center PushThe company won 12 new business deals across different regions and products, including turbochargers, dual-clutch, variable cam timing systems, controllers for off-highway vehicles, electric motors and thermal systems for commercial vehicles. Many of these projects are expected to start production between 2026 and 2029, which should help support its long-term growth and profitability.

BWA is moving beyond light-vehicle content and expanding into data centers and other industrial markets. It plans to offer three main solutions — power generation, energy storage and power conversion.

The turbine generator system planned for launch in 2027 is on track and could generate more than $300 million in sales in its first year. Its battery storage systems and microgrid inverters are still being tested by customers and undergoing certification processes.

BorgWarner Returns Capital While Reaffirming 2026 OutlookShareholder returns remained a focus. BorgWarner returned about $185 million during the quarter, including $150 million in share repurchases and $35 million in dividends. The buybacks also reduced the share count, supporting EPS growth.

Cash generation improved from the prior-year quarter. Net cash provided by operating activities was $152 million compared with $82 million in the year-ago period. Capital expenditures amounted to $143 million versus $119 million a year ago. Free cash flow was $13 million versus an outflow of $35 million in the prior-year quarter.

For full-year 2026, BorgWarner anticipates net sales in the band of $14-$14.3 billion. Adjusted operating margin is expected in the band of 10.7-10.9%. Adjusted EPS is estimated to be in the range of $5-$5.20.

Operating cash flow is forecasted to be in the range of $1.6-$1.7 billion. Free cash flow is projected in the band of $900 million to $1.1 billion.

BWA’s Balance Sheet Reflects Continued LiquidityBorgWarner had $2.11 billion in cash and cash equivalents as of March 31, 2026, down from $2.31 billion as of Dec. 31, 2025, reflecting net cash usage from financing activities tied to buybacks and dividends. Total assets were $13.65 billion as of March 31, 2026, compared with $13.77 billion as of Dec. 31, 2025.

Debt levels were broadly stable. Long-term debt was $3.88 billion as of March 31, 2026, slightly down from $3.89 billion as of Dec. 31, 2025. Liabilities amounted to $8.01 billion as of March 31, 2026, compared with $8.15 billion as of Dec. 31, 2025. Receivables increased to $3.09 billion from $2.96 billion, and inventories were essentially flat at $1.2 billion as of March 31, 2026.

BWA currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer ReleasesPHINIA Inc. (PHIN - Free Report) reported first-quarter 2026 results on April 30. It posted adjusted earnings of $1.29 per share, which increased 37.2% year over year. The figure beat the Zacks Consensus Estimate of 92 cents by 40.2%. Net sales were $878 million, up 10.3% from the year-ago quarter’s level and topping the consensus mark of $840 million by 4.5%. 

For 2026, PHINIA continues to expect net sales of $3.52-$3.72 billion, implying year-over-year growth of 1-7%. Net earnings are projected to be in the range of $165-$195 million, while adjusted EBITDA is expected in the $485-$525 million band, with a net earnings margin of 4.7-5.2% and an adjusted EBITDA margin of 13.7-14.3%. The company expects adjusted free cash flow of $200-$240 million and an adjusted tax rate of 30-34%.

Autoliv, Inc. (ALV - Free Report) reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter’s level. The figure outpaced the Zacks Consensus Estimate of $2.63 billion by 4.52%.

Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.

2 hours ago

Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesMarketBeat

Church & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

NYSE:CHD

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Auto-Tires-Trucks stock. BWA has a Momentum Style Score of B, and shares are up 13.6% over the past four weeks.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.16 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BWA should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

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That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.1% for the current fiscal year.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.16 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

BorgWarner (BWA +0.41%) is a name investors associate with turbochargers and drivetrains, but now it's thrown its hat into the hyperscaler ring. In February, the company signed a master supply agreement to provide modular turbine generators to help power data centers.

The deal with TurboCell, a subsidiary of infrastructure developer Endeavor, marks an important entry into the industrial power market. Management expects production to begin in 2027, with sales exceeding $300 million in the first year and the potential to grow in the "mid-teens" over the coming decade.

Image source: Getty Images.

Shifting gears from powertrains to power grids The move into power generation is intended to capitalize on the rising demand for electricity from data centers. Research firm MarketsandMarkets pegs the addressable market for data center generators at $8.5 billion today.

BorgWarner's turbine systems will provide backup and prime power for these facilities. The technology leverages the company's core engineering expertise in turbochargers, thermal management, and power electronics. This allows for valuable vertical integration, with BorgWarner controlling roughly 65% of the content in each system.

The generators will also be fuel-flexible, capable of running on natural gas, propane, diesel, or hydrogen. This positions the company to meet strict emissions standards while providing the reliable power that data centers require.

Management expects the new business to deliver mid-teens incremental margins and be accretive to earnings per share in year one. If things go well, the company will look to expand by supplying battery energy storage systems as well.

The auto business still pays the bills While the data center market is attractive, the company is an auto parts manufacturer at its core. Products for internal combustion engines (ICE) and hybrid vehicles still generate over 80% of total revenue and account for the majority of BorgWarner's profits. This year, management projects a decline in light vehicle production in its global markets, which will weigh on top-line growth.

Meanwhile, the transition to electric vehicles (EVs) continues to be a volatile one. The battery energy systems division saw sales decline 32% year over year in the first quarter of 2026, driven by weaker incentives in North America and demand in Europe. New contract wins in China have helped offset some of the challenges, but its battery segment is still expected to decline by 35% to 40% this year.

Despite the weakness in EV adoption, the company steadily improved its operating margins last year and grew operating cash flow by nearly 20%. That trend continued in the first quarter, thanks to prior cost cuts, with operating margins up by 50 basis points to 10.5%.

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As investors have become accustomed to, once the data center news hit, the stock went on a tear. The share price has more than doubled in the past year, and the stock now trades at 13 times this year's earnings estimates.

The multiple may appear cheap on the surface, but some caution is warranted. Given its industry association, BorgWarner rarely trades above 10 times forward earnings. The infrastructure market provides a welcomed change of pace for the company, but it's still too early to tell how much of it actually captures.

A month has gone by since the last earnings report for BorgWarner (BWA - Free Report) . Shares have added about 32.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BorgWarner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

BorgWarner’s Q1 Earnings Beat ExpectationsBorgWarner adjusted earnings of $1.24 per share in the first quarter of 2026, beating the Zacks Consensus Estimate of $1.16 by 6.83%. Revenues of $3.53 billion topped the Zacks Consensus Estimate of $3.47 billion by 1.74% and increased 0.5% year over year.

While reported sales benefited from stronger foreign currencies, organic net sales fell 4.2% from the year-ago quarter’s level. Disciplined cost controls and the exit of the charging business helped support profitability in a softer production environment.

BWA’s Margin Gains Offset Softer Organic SalesProfits improved even though sales volumes were weak. On a U.S. GAAP basis, operating margin increased to 9.5% from 6.7% a year ago, while operating income rose from $237 million to $336 million. Gross margin also improved to 19.2% from 18.2%, aided by higher gross profit.

On an adjusted basis, operating margin reached 10.5%, up 50 basis points year over year, while adjusted operating income increased to $372 million from $352 million. Favorable currency movements, along with ongoing productivity gains and restructuring efforts, helped boost adjusted operating income compared with last year.

BorgWarner’s Segments Show Mixed Demand PatternsTurbos & Thermal Technologies revenues declined 1.4% year over year to $1.43 billion, while segment adjusted operating income dropped to $214 million from $235 million. The decline was mainly due to weaker demand for some core thermal products, partially offset by currency tailwinds.

Drivetrain & Morse Systems continued to be a steadier contributor, with sales rising 4.5% to $1.42 billion and segment adjusted operating income improving to $260 million from $243 million.

PowerDrive Systems posted revenues of $587 million, up 4.6%. However, the segment still posted a loss, though it narrowed to $36 million from $43 million last year.

Battery Energy Systems sales dropped to $102 million from $150 million. However, the segment’s loss improved significantly, narrowing to $2 million from $22 million last year.

BWA Expands Portfolio With New Awards and Data Center PushThe company won 12 new business deals across different regions and products, including turbochargers, dual-clutch, variable cam timing systems, controllers for off-highway vehicles, electric motors and thermal systems for commercial vehicles. Many of these projects are expected to start production between 2026 and 2029, which should help support its long-term growth and profitability.

BWA is moving beyond light-vehicle content and expanding into data centers and other industrial markets. It plans to offer three main solutions — power generation, energy storage and power conversion.

The turbine generator system planned for launch in 2027 is on track and could generate more than $300 million in sales in its first year. Its battery storage systems and microgrid inverters are still being tested by customers and undergoing certification processes.

BorgWarner Returns Capital While Reaffirming 2026 OutlookShareholder returns remained a focus. BorgWarner returned about $185 million during the quarter, including $150 million in share repurchases and $35 million in dividends. The buybacks also reduced the share count, supporting EPS growth.

Cash generation improved from the prior-year quarter. Net cash provided by operating activities was $152 million compared with $82 million in the year-ago period. Capital expenditures amounted to $143 million versus $119 million a year ago. Free cash flow was $13 million versus an outflow of $35 million in the prior-year quarter.

For full-year 2026, BorgWarner anticipates net sales in the band of $14-$14.3 billion. Adjusted operating margin is expected in the band of 10.7-10.9%. Adjusted EPS is estimated to be in the range of $5-$5.20.

Operating cash flow is forecasted to be in the range of $1.6-$1.7 billion. Free cash flow is projected in the band of $900 million to $1.1 billion.

BWA’s Balance Sheet Reflects Continued LiquidityBorgWarner had $2.11 billion in cash and cash equivalents as of March 31, 2026, down from $2.31 billion as of Dec. 31, 2025, reflecting net cash usage from financing activities tied to buybacks and dividends. Total assets were $13.65 billion as of March 31, 2026, compared with $13.77 billion as of Dec. 31, 2025.

Debt levels were broadly stable. Long-term debt was $3.88 billion as of March 31, 2026, slightly down from $3.89 billion as of Dec. 31, 2025. Liabilities amounted to $8.01 billion as of March 31, 2026, compared with $8.15 billion as of Dec. 31, 2025. Receivables increased to $3.09 billion from $2.96 billion, and inventories were essentially flat at $1.2 billion as of March 31, 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresAt this time, BorgWarner has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook BorgWarner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerBorgWarner belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Garrett Motion (GTX - Free Report) , has gained 21.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Garrett Motion reported revenues of $985 million in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $0.49 for the same period compares with $0.30 a year ago.

Garrett Motion is expected to post earnings of $0.46 per share for the current quarter, representing a year-over-year change of +9.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Garrett Motion. Also, the stock has a VGM Score of B.

BorgWarner Inc. (BWA) Presents at 16th Annual Wells Fargo Industrials & Materials Conference Transcript

Posted by Defense World Staff on Apr 24th, 2026

Osage Exploration and Development (OTCMKTS:OEDVQ – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Earnings & Valuation This table compares Osage Exploration and Development and Magnolia Oil & Gas”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Osage Exploration and Development N/A N/A N/A N/A N/A Magnolia Oil & Gas $1.31 billion 4.21 $325.25 million $1.72 17.23 Magnolia Oil & Gas has higher revenue and earnings than Osage Exploration and Development.

Analyst Recommendations This is a summary of recent ratings and target prices for Osage Exploration and Development and Magnolia Oil & Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Osage Exploration and Development 0 0 0 0 0.00 Magnolia Oil & Gas 0 9 7 1 2.53 Magnolia Oil & Gas has a consensus target price of $31.00, suggesting a potential upside of 4.61%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Osage Exploration and Development.

Profitability This table compares Osage Exploration and Development and Magnolia Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Osage Exploration and Development N/A N/A N/A Magnolia Oil & Gas 24.79% 16.67% 11.53% Institutional and Insider Ownership 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary Magnolia Oil & Gas beats Osage Exploration and Development on 10 of the 10 factors compared between the two stocks.

About Osage Exploration and Development (Get Free Report)

Osage Exploration & Development, Inc. is an exploration and production company, which interests in oil and gas wells and prospects. It is focused on the Horizontal Mississippian and Woodford plays in Oklahoma. The company was founded on February 24, 2003 and is headquartered in San Diego, CA.

About Magnolia Oil & Gas (Get Free Report)

Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.

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Wall Street expects a year-over-year increase in earnings on higher revenues when Cheniere Energy (LNG - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis natural gas company is expected to post quarterly earnings of $3.91 per share in its upcoming report, which represents a year-over-year change of +149%.

Revenues are expected to be $5.7 billion, up 4.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 16.29% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cheniere Energy?For Cheniere Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.79%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Cheniere Energy will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cheniere Energy would post earnings of $3.83 per share when it actually produced earnings of $2.87, delivering a surprise of -25.07%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cheniere Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Magnolia Oil & Gas Corp (MGY - Free Report) , is soon expected to post earnings of $0.49 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -10.9%. Revenues for the quarter are expected to be $335.12 million, down 4.3% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Magnolia Oil & Gas Corp has been revised 32.6% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that Magnolia Oil & Gas Corp will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

HOUSTON--(BUSINESS WIRE)--Magnolia Oil & Gas Announces Quarterly Dividend.

Magnolia Oil & Gas Corp (MGY - Free Report) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.20%. A quarter ago, it was expected that this company would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of +2.78%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Magnolia Oil & Gas Corp, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $358.51 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.98%. This compares to year-ago revenues of $350.3 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Magnolia Oil & Gas Corp shares have added about 41% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Magnolia Oil & Gas Corp?While Magnolia Oil & Gas Corp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Magnolia Oil & Gas Corp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $371.73 million in revenues for the coming quarter and $2.80 on $1.47 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Evolution Petroleum (EPM - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.

This oil and gas company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 185.7% higher over the last 30 days to the current level.

Evolution Petroleum's revenues are expected to be $22.97 million, up 1.8% from the year-ago quarter.

Magnolia Oil & Gas Corporation (MGY) Q1 2026 Earnings Call Transcript

Key Takeaways MGY beat Q1 estimates as production rose 6% year over year to 102.6 Mboe/d on Giddings strength.Magnolia generated $145.6M in free cash flow and returned 57% through dividends and buybacks.MGY spent $155M on bolt-on deals in Karnes and Giddings, adding acreage and low-decline output. Magnolia Oil & Gas Corporation (MGY - Free Report) posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.

The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.

MGY's Volumes Rise on Giddings StrengthMagnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.

Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.

Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.

Magnolia's Revenue Mix Reflects Strong Oil PricingOil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.

Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.

MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.

MGY's Costs, Firm and Operating Margin HeadwindsOperating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.

Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.

Magnolia Converts Cash Flow Into Shareholder ReturnsNet cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.

Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.

MGY Expands Position With Bolt-On AcquisitionsA notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.

On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.

MGY’s Balance SheetThe balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.

GuidanceFor second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million.  Fully diluted share count is projected to be approximately 185 million.

This Zacks Rank #1 (Strong Buy) company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.

Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.

Important Earnings at a GlanceWhile we have discussed MGY’s first-quarter results in detail, let us take a look at three other key reports in this space.

Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Magnolia Oil & Gas Corp (MGY - Free Report) Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Houston, TX, the firm is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.

MGY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Oils-Energy stock. MGY has a Momentum Style Score of A, and shares are up 0.1% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.20 to $2.86 per share. MGY boasts an average earnings surprise of +4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MGY should be on investors' short list.

Magnolia Oil & Gas Corp (MGY - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Magnolia Oil & Gas Corp, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $0.76 per share for the current quarter represents a change of +76.7% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Magnolia Oil & Gas Corp has increased 7.95% because four estimates have moved higher compared to no negative revisions.

Current-Year Estimate RevisionsThe company is expected to earn $2.91 per share for the full year, which represents a change of +62.6% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Magnolia Oil & Gas Corp. Over the past month, four estimates have moved higher compared to one negative revision, helping the consensus estimate increase 8.88%.

Favorable Zacks RankThe promising estimate revisions have helped Magnolia Oil & Gas Corp earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineWhile strong estimate revisions for Magnolia Oil & Gas Corp have attracted decent investments and pushed the stock 7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

A month has gone by since the last earnings report for Magnolia Oil & Gas Corp (MGY - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Magnolia Oil & Gas Corp due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Magnolia Oil & Gas Corp before we dive into how investors and analysts have reacted as of late.

MGY Q1 Earnings Beat Estimates on Higher Volumes and Bolt-On DealsMagnolia Oil & Gas posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.

The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.

Production and PriceMagnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.

Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.

Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.

Oil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.

Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.

MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.

Costs and Operating Margin Operating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.

Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.

Net cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.

Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.

A notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.

On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.

Balance SheetThe balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.

GuidanceFor second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million.  Fully diluted share count is projected to be approximately 185 million.

This company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026. 

Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 14.29% due to these changes.

VGM ScoresCurrently, Magnolia Oil & Gas Corp has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

For the quarter ended March 2026, Darling Ingredients (DAR - Free Report) reported revenue of $1.55 billion, up 12.3% over the same period last year. EPS came in at $0.83, compared to -$0.16 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.56 billion, representing a surprise of -0.35%. The company delivered an EPS surprise of +49.09%, with the consensus EPS estimate being $0.56.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Darling performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Feed Ingredients: $985.34 million compared to the $1.03 billion average estimate based on two analysts. The reported number represents a change of +9.9% year over year.Net Sales- Fuel Ingredients: $160.25 million versus $147.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.6% change.Net Sales- Food Ingredients: $405.23 million compared to the $398.58 million average estimate based on two analysts. The reported number represents a change of +16% year over year.Segment Adjusted EBITDA- Food Ingredients: $80.78 million compared to the $75.59 million average estimate based on two analysts.Segment Adjusted EBITDA- Corporate: $-22.6 million versus $-20.63 million estimated by two analysts on average.Segment Adjusted EBITDA- Fuel Ingredients: $28.74 million compared to the $19.93 million average estimate based on two analysts.Segment Adjusted EBITDA- Feed Ingredients: $168.73 million versus $171.97 million estimated by two analysts on average.View all Key Company Metrics for Darling here>>>

Shares of Darling have returned +1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

IRVING, Texas--(BUSINESS WIRE)---- $DAR--Darling Ingredients Inc. (NYSE: DAR) will host its 2026 Investor Day on Monday, May 11, 2026, at 10 a.m. Eastern Time in New York City and via a concurrent webcast. Executive leadership will provide details about the company's strategic priorities and three-year outlook. Darling Ingredients' executives will highlight several key themes, including: Strong foundation: The company's strategic, multi-year investments that have strengthened core assets, enhanced capab.

2 hours ago

Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

NYSE:CHD

Darling Ingredients Inc. (DAR) Analyst/Investor Day Transcript

Key Takeaways Darling Ingredients' shares jumped 84.3% in six months on stronger earnings and diesel margins.DAR reported Q1 adjusted EBITDA of $406.8M, more than double the prior-year level.Darling Ingredients sees stronger renewable diesel demand amid favorable fuel policies. Darling Ingredients Inc. (DAR - Free Report) has become one of the strongest-performing stocks in the consumer staples space in recent months, driven by a sharp recovery in renewable diesel margins, improving operational execution and strengthening earnings momentum. Shares of DAR have surged 84.3% over the past six months, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 11.7% and the Zacks Consumer Staples sector gained 4.3%, while the Food - Miscellaneous industry declined 16.7%.

DAR has also substantially outperformed several key peers, such as Archer-Daniels-Midland Company (ADM - Free Report) , Tyson Foods, Inc. (TSN - Free Report) and Ingredion Incorporated (INGR - Free Report) . ADM and TSN gained 35.7% and 23.5%, respectively, while INGR declined 1.4% over the same period.

DAR Stock Past 6 Months Performance
Image Source: Zacks Investment Research

As of the latest trading session, Darling Ingredients closed at $63.82, just 3.3% below its 52-week high of $66.02 reached on May 5, 2026. The stock is trading above the 50 and 200-day moving averages. Trading above these averages signals bullish sentiments.

Image Source: Zacks Investment Research

This strong outperformance has put Darling Ingredients firmly in the spotlight, reinforcing investor confidence in its improving business momentum and recovery outlook. The recent rally suggests that strengthening fundamentals, improving renewable diesel economics and better operational execution may be supporting a more sustainable turnaround story for the stock. Let’s take a closer look at the key drivers behind DAR’s rally and what they could mean for investors going forward.

What’s Fueling Darling Ingredients’ Rally?Darling Ingredients’ rally is being fueled by a sharp rebound in profitability and operational momentum across both its core ingredients business and the Diamond Green Diesel (“DGD”) joint venture. In the first quarter of 2026, the company reported earnings per share of 83 cents compared with a loss a year earlier, while combined adjusted EBITDA more than doubled to $406.8 million. Revenues also climbed 12.3% to $1,550.8 million, reflecting stronger execution, better margins and improved market conditions. Management described the quarter as an “inflection point” for earnings power, reinforcing investor confidence in the company’s recovery trajectory.

Another major catalyst is the turnaround in renewable diesel economics. DGD generated $151.2 million in EBITDA during the first quarter, supported by stronger renewable fuel margins, higher diesel prices and a favorable Renewable Volume Obligation environment. Management noted that finalized renewable fuel rules have made future demand for renewable diesel clearer and stronger. At the same time, higher global energy prices are making renewable fuels more cost-competitive compared with traditional fuels. Investors are increasingly optimistic that improved biofuel policies and stronger feedstock pricing can sustain elevated earnings through the rest of 2026.

The company’s core ingredients segments are also showing strong operational improvements. Feed Ingredients benefited from disciplined risk management, higher poultry volumes, better throughput and stronger gross margins, while the Food Ingredients business experienced rising demand for collagen and gelatin products, especially in Europe and Asia. Darling Ingredients highlighted growth opportunities tied to health and nutrition trends, including its Nextida glucose-control product and broader demand for collagen-based functional foods. These developments have strengthened the narrative that DAR is not only an energy-transition play, but also a diversified specialty ingredients company with multiple growth engines.

Finally, investors are responding positively to Darling Ingredients' improving balance sheet outlook and cash generation potential. The company monetized $45 million in production tax credits during the first quarter of 2026 and reiterated its focus on deleveraging, with management targeting debt reduction toward the $3 billion level. Stronger EBITDA, rising renewable diesel margins and expectations for additional free cash flow have improved sentiment around financial flexibility and future shareholder value creation. Guidance for second-quarter core ingredients EBITDA of $260 million to $275 million further reinforced expectations that the company’s earnings momentum could continue through the year.

How Are the Consensus Estimates Faring for DAR?Reflecting the positive sentiment around Darling Ingredients, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past seven days, the EPS estimate for fiscal 2026 and 2027 has inched up 10 cents to $4.54 and 8 cents to $4.93, respectively. These estimates indicate expected year-over-year growth rates of 567.7% and 8.5%, respectively.

Image Source: Zacks Investment Research

Darling Ingredients Stock’s ValuationDarling Ingredients is currently trading at an attractive valuation compared with the broader industry. The stock's forward 12-month P/E ratio stands at 13.64, slightly down from the industry average of 13.66, highlighting its appeal as a value opportunity. Compared with peers, the company is trading at a discount to Archer-Daniels-Midland (with a forward 12-month P/E ratio of 16.99) and Tyson Foods (15.07). It is trading at a premium compared with Ingredion’s forward 12-month P/E ratio of 9.22.

DAR P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Here’s Why Darling Ingredients Can Be an Attractive PlayDarling Ingredients’ recent rally is supported by improving renewable diesel economics, stronger operational execution and a sharp rebound in earnings. The company’s recovery in Diamond Green Diesel margins, improving demand trends across its ingredients business and focus on debt reduction are strengthening the long-term growth outlook.

While the stock has rallied sharply in recent months, Darling Ingredients still trades at a reasonable valuation compared with several industry peers. With improving earnings momentum, stronger cash flow potential and favorable industry trends, this Zacks Rank #2 (Buy) stock appears well-positioned for investors seeking long-term growth opportunities.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Darling Ingredients (DAR - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this producer of natural ingredients from edible and inedible bionutrients, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Darling Ingredients, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $1.13 per share for the current quarter represents a change of +1,155.6% from the number reported a year ago.

Over the last 30 days, three estimates have moved higher for Darling compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 41.67%.

Current-Year Estimate RevisionsThe company is expected to earn $4.54 per share for the full year, which represents a change of +567.7% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Darling. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 36.13%.

Favorable Zacks RankThanks to promising estimate revisions, Darling currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineDarling shares have added 6.5% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

Shares of Darling Ingredients (DAR - Free Report) have gained 6.5% over the past four weeks to close the last trading session at $62.26, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $77.92 indicates a potential upside of 25.2%.

The mean estimate comprises 12 short-term price targets with a standard deviation of $5.95. While the lowest estimate of $70.00 indicates a 12.4% increase from the current price level, the most optimistic analyst expects the stock to surge 44.6% to reach $90.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in DAR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why DAR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 37.6%, as five estimates have moved higher compared to no negative revision.

Moreover, DAR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much DAR could gain, the direction of price movement it implies does appear to be a good guide.

Key Takeaways DAR's DGD unit posted $151.2M adjusted EBITDA in Q1 2026 versus $6M a year earlier.Darling Ingredients is prioritizing deleveraging and disciplined capital allocation over expansion.DAR monetized $45M in Production Tax Credits and plans to sell most grease trap service assets. Darling Ingredients Inc. (DAR - Free Report) appears to be entering a new strategic phase centered on operational discipline and cash-flow optimization rather than aggressive expansion. On its first-quarter 2026 earnings call, management suggests the company is shifting from navigating commodity and policy volatility toward monetizing a more stable renewable fuels environment and improving balance-sheet flexibility.

A key element of this transition is the improving contribution from Diamond Green Diesel (“DGD”), which generated $151.2 million in adjusted EBITDA for Darling Ingredients in the first quarter, compared with just $6 million a year earlier. The company described the fuel segment as being “at an inflection point” following the finalization of Renewable Volume Obligations, which have strengthened renewable diesel economics and boosted feedstock pricing.

At the same time, Darling Ingredients is becoming more selective with capital deployment. Management emphasized disciplined capital allocation, deleveraging and portfolio optimization, including the pending sale of the majority of its grease trap environmental service assets. The company also monetized $45 million in Production Tax Credits during the quarter to improve liquidity and support debt reduction efforts.

This marks a notable shift from a period dominated by external headwinds and uneven biofuel margins. Instead of emphasizing capacity growth, Darling Ingredients is now focused on extracting stronger returns from its existing platform, improving operational efficiency and using a more supportive regulatory backdrop to strengthen free cash generation. That strategic repositioning could define the company’s next operating chapter.

What Do the Latest Metrics Say About Darling Ingredients?Darling Ingredients, which competes with Tyson Foods Inc. (TSN - Free Report) and Ingredion Inc. (INGR - Free Report) , has seen its shares rally 85.8% in the past year against the industry’s 24.6% decline. Shares of Tyson Foods have risen 17.1%, while Ingredion has declined 25.1% during the same period.

Image Source: Zacks Investment Research

From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 12.2x, lower than the industry’s 13.72x. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 14.56x) while trading at a premium to Ingredion (9.13x). 

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