WABCO Holdings Inc.NYSE
Wabco Continues To Execute As They Take Advantage Of Industry Dynamics
Alpha Gen Capital
Alpha Gen Capital
Today, 10:42 AM
- While Tesla Motors (NASDAQ:TSLA) may have grabbed some headlines this week for its ambitious goals with autonomous driving (SAE level 5), the technology is being widely discussed across industries as a potential future reality.
- At a real estate conference in New York this week, a panel member called autonomous vehicles the biggest tech news concerning real estate in the last ten years. Some see a future reversal of urbanization trends in a development that could have significant investment implications.
- City planners and architects are already thinking of next-gen design. A paper titled "Beyond Google's Cute Car" (.pdf version) is a good example of how cities are being reimagined.
- Then there's this from the man who designed the 2015 Ford Mustang. "The next 10 years in this business is going to be the biggest change and challenge since the turn of the last century when cars took over for horses," said Ford design chief Moray Callum. Ford (NYSE:F) aims to have a high-volume, fully autonomous SAE level 4-capable vehicle in commercial operation in 2021.
- Self-driving car development is a topic of discussion on FedEx (NYSE:FDX), UPS (NYSE:UPS), Lyft (Private:LYFT), Uber (Private:UBER), Hertz Global (NYSE:HTZ), Google (GOOGL, GOOG), Avis Budget (NASDAQ:CAR), Domino's Pizza (NYSE:DPZ) and Nvidia (NASDAQ:NVDA). Earnings season is just heating up, but a host of companies -- including OTCPK:TMOAF, OTCPK:DDAIF, OTCPK:VOLVY, MXIM, CPRT, WBC, GNTX and XLNX -- have already talked up the trend on their conference calls. GM reports earnings this week and will update on any self-driving Chevy Bolt plans.
- Looking ahead, insurance companies, chipmakers, truckers and cybersecurity firms (NYSEARCA:HACK) will be firmly in the self-driving conversation.
- So who has a profitable trade idea off of the evolution of cars?
Thu, Oct. 20, 10:30 AM
- WABCO Holdings (WBC -3.8%) reports sales rose 5.2% in local currencies in Q3.
- Adjusted gross profit rate improved 70 bps to 31.7%.
- SG&A expense rate fell 130 bps to 14.1%.
- Adjusted operating margin rate grew 50 bps to 13.2%.
- FY2016 Guidance: Sales growth: $2.8B to $2.83B (+7.5% to +8.5% in local currencies); Adjusted operating margin rate: 13.5% to 13.8%; GAAP operating margin rate: 12.3% to 12.6%; Adjusted net income: $322M to $327.6M; GAAP net income: $235.5M to $241.1M; Adjusted EPS: $5.75 to $5.85; Diluted EPS: $4.21 to $4.31; Diluted shares outstanding: ~56M.
Thu, Oct. 20, 6:31 AM
Wed, Oct. 19, 5:30 PM
Tue, Oct. 11, 9:33 AM
- The German Bundesrat has fired a warning shot across the automobile industry that is yet another indication that seismic changes could be coming down the road.
- In a vote intended to pressure the EU, the Bundesrat approved a measure to ban gas and diesel vehicles by 2030. The Bundesrat doesn't set policy across Europe, but is considered influential.
- Naturally, the fact that the push is coming from the home of Mercedes, BMW, and Volkswagen also adds a degree of intrigue to the news and the underlying electrification push out of the trio.
- Wall Street analysts with their 1-year price target mindset haven't weighed in on the development, but there's plenty of discussion on Seeking Alpha about the implications.
- Previously: Germany says nein to internal combustion engines (Oct. 10)
- Related auto parts stocks: ACW, ALSN, ALV, AXL, BWA, CAAS, CPS, DAN, DLPH, DORM, FDML, FENX, GNTX, JCI, LDL, LEA, LKQ, MBLY, MLR, MNRO, MOD, MPAA, MPG, MTOR, PLOW, SMP, SRI, STRT, SUP, STRT, TEN, THRM, TEN, TOWR, UFAB, VC, VOXX, WBC, ZX.
Wed, Jul. 20, 12:00 PM
Wed, Jul. 20, 6:51 AM
- WABCO Holdings (NYSE:WBC) reports sales growth of 11.5% in local currencies.
- Adjusted gross margin rate remained constant Y/Y at 31.6%.
- SG&A expense rate dropped 10 bps to 13.5%.
- Adjusted operating margin rate increased 40 bps to 14.2%.
- FY2016 Guidance: Sales growth: $2.78B to $2.86B (+7% to +10% in local currencies); Adjusted operating margin rate: 13.5% to 14%; GAAP operating margin rate: 12.4% to 12.9%; Adjusted net income: $313.6M to $330.4M; GAAP net income: $208.7M to $225.5M; Adjusted EPS: $5.60 to $5.90; Diluted EPS: $3.73 to $4.03; Diluted shares outstanding: ~56M.
- Q2 results
Wed, Jul. 20, 6:32 AM
Tue, Jul. 19, 5:30 PM
Tue, Jun. 28, 2:42 PM
- WABCO (WBC -2%) is downgraded to Neutral from Overweight with a $94 price target, cut from $124, at Piper Jaffray, which says the company has the highest European exposureamong truck suppliers at 55% of 2015 revenue.
- Investors likely will shun WBC as investors looking to minimize their exposure to Europe over the coming months, the firm says.
- Piper Jaffray also downgrades Navistar (NAV -0.3%) to Neutral from Overweight with an $11.50 price target, cut from $14; even though Brexit-related risks are low for NAV, investors likely will look for safer options given declining orders in the U.S. truck market.
- Finally, the firm cuts Meritor (MTOR -9.6%) to Underweight from Neutral with a $6 target, citing the company's 20% of revenues that come from Europe and its 75% debt-to-capital ratio.
- WBC also is downgraded to Neutral from Buy with a $95 price target at Goldman Sachs, which also cites the company's European truck market exposure in cutting 2017-18 earnings estimates.
Fri, Jun. 24, 12:00 PM
Fri, Apr. 22, 6:56 AM
- WABCO Holdings (NYSE:WBC) reports sales rose 9.7% in local currencies.
- Adjusted gross profit rate fell 170 bps to 31.4%.
- SG&A expense rate declined 130 bps to 17.5%.
- Adjusted operating margin rate dropped 40 bps to 13.9%.
- FY2016 Guidance: Sales growth: $2.7B to $2.83B (+6% to +11% in local currencies); Adjusted operating margin rate: 13.8% to 14.3%; GAAP operating margin rate: 12.7% to 13.2%; Adjusted net income: $296.8M to $324.8M; GAAP net income: $192.2M to $220.2M; Adjusted EPS: $5.30 to $5.80; Diluted EPS: $3.43 to $3.93; Diluted shares outstanding: ~56M.
- Q1 results
Fri, Apr. 22, 6:32 AM
- WABCO Holdings (NYSE:WBC): Q1 EPS of $1.37 beats by $0.01.
- Revenue of $688.7M (+5.6% Y/Y) beats by $8.87M.
Thu, Apr. 21, 5:30 PM
Thu, Feb. 11, 6:32 AM
- WABCO Holdings (NYSE:WBC): Q4 EPS of $1.43 beats by $0.08.
- Revenue of $670.6M (-1.3% Y/Y) beats by $13.06M.
Wed, Feb. 10, 5:30 PM
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