Wabco Continues To Execute As They Take Advantage Of Industry Dynamics
Alpha Gen Capital
Alpha Gen Capital
Wabco: Unlevered Secular Growth Theme With Upside Potential
Alpha Gen Capital
Alpha Gen Capital
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
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
- AAP, AB, ACOR, ALLE, ALU, AVP, AYR, BG, BTU, BWA, CCE, COR, CPLA, CVE, DBD, FAF, FLIR, GNC, GPI, GRA, HUN, INCY, INT, IVC, K, KKR, LC, LIOX, LPX, MANU, MFC, MGI, MOS, MWW, NCI, NICE, NILE, NLSN, NNN, NOK, NTWK, NWE, OZM, PAG, PDS, PEP, PNK, Q, RAI, SHPG, SON, STC, TAP, TCK, TEVA, TGH, THS, TIME, TRI, TRIP, TZOO, VG, WBC, WOOF, WSO, WWAV, WWE
Mon, Jan. 25, 5:15 PM
- Citigroup analysts upgrade PACCAR (NASDAQ:PCAR) to Buy from Neutral with a $54 price target, issue a Buy rating on Wabco (NYSE:WBC) with a $110 target, and downgrade Cummins (NYSE:CMI) to Neutral from Buy with a $95 price target.
- Citi says that while freight fundamentals remain sluggish and excess truck inventories will weigh on near-term build rates,” history suggests relative share underperformance could be diminishing, with PCAR as an earlier cycle beneficiary as sentiment shifts.
- The firm prefers PCAR over CMI, as sustained growth in high-margin parts coupled with an ongoing rebound in western Europe "should help to drive more modest ’16 decrimentals than the bears assume.”
- Citi says WBC stand out in the machinery group, based on its top and bottom line growth outlook for 2016 and a return on investment capital above 40%.
Dec. 9, 2015, 9:53 AM
- The NHTSA proposes adding new safety categories to its ratings systems with an aim to accelerate technology innovation and integration.
- Safety features such as forward collision warnings, blind-spot alerts, lane departure information, and rear cameras would be part of the ratings system under the changes.
- The push from the regulator could help some auto suppliers such as Delphi Automotive (DLPH +1.4%) and Mobileye (MBLY +2.5%), notes the WSJ.
- Autoliv (ALV +2.1%), WABCO Holdings (WBC +1.5%), Borg Warner (BWA +1.3%), and Meritor (MTOR +1.3%) are all ahead of market averages in early action today, perhaps due to the NHTSA strategy reveal.
- Related auto stocks GM, F, TM, HMC, OTCPK:NSANY, OTCQX:VLKAY, OTCPK:DDAIF, OTCPK:BAMXY, TSLA, TTM, OTC:HYMLF.
Oct. 22, 2015, 6:34 AM
- WABCO Holdings (NYSE:WBC): Q3 EPS of $1.39 in-line.
- Revenue of $643.6M (-9.0% Y/Y) misses by $11.2M.
Oct. 21, 2015, 5:30 PM
- AB, ACAT, ACOR, ADS, AEP, ALK, APOL, ASPS, BCC, BEN, BHE, BMS, CAB, CAM, CAT, CBU, CEMP, COR, CRS, CY, DAN, DGX, DHR, DLX, DNKN, DOW, DPS, DST, EQM, EQT, FAF, FCX, FNB, GMT, GPK, GRA, HBAN, HUB.B, IVC, JNS, LAZ, LLY, LUV, MCD, MHO, MINI, MJN, MMM, NDAQ, NUE, NWE, ORI, PCP, PDS, PENN, PH, PHM, PRLB, PTEN, R, RCI, RS, RTN, SIRI, SJR, SNA, SQNS, STC, SWK, TCB, TROW, UA, UAL, UNP, USG, UTEK, WAB, WBC, WCC, XRS
Sep. 25, 2015, 11:20 AM
- Barclays analyst Robert Wertheimer begins coverage of the U.S. machinery sector with a negative view, seeing consensus estimates too high across the board with revenue for the current cycle already peaking for most of the sector.
- The analyst expects a sharper than expected downturn for North American trucks, with another peak level eight years away; the tractor supercycle is only two years in a downturn, while the prior two supercycles saw seven consecutive down years in machinery sales, Wertheimer says.
- Of the 15 companies in the firm's sector coverage universe, only two are rated Overweight: United Rentals (URI +1.5%) and Allison Transmission (ALSN +0.4%).
- Started with Equal Weight ratings: Actuant (ATU -1.2%), AGCO (AGCO +1%), Caterpillar (CAT -1%), Joy Global (JOY -2.9%), Lincoln Electric (LECO -0.8%), Manitowoc (MTW -1.9%), Terex (TEX -0.7%) and WABCO (WBC -1.2%).
- Rated Underweight: Deere (DE -0.3%), CNH Industrial (CNHI +1.5%), Cummins (CMI -0.8%), PACCAR (PCAR -1%) and Navistar (NAV -2.9%).