WABCO's (WBC) Q2 Earnings Drive Past Estimates, Grows Y/Y
WABCO Holdings Inc.’s WBC second-quarter 2018 adjusted earnings were $2 per share, beating the Zacks Consensus Estimate of $1.91. Moreover, the bottom line improved 18.3% from the prior-year quarter figure of $1.69.
On a reported basis, total revenues rose 25.9% to $1 billion from $795 million a year ago while outpaced the Zacks Consensus Estimate of $994.2 million. Favorable global demand, along with market growth, contributed to this rise in sales.
During the reported quarter, gross profit was $310.3 million compared with $247.5 million recorded in second-quarter 2017. Adjusted operating expenses rose $150.2 million from $132.9 million in the prior-year quarter.
Wabco Holdings Inc. Price, Consensus and EPS Surprise
Wabco Holdings Inc. Price, Consensus and EPS Surprise | Wabco Holdings Inc. Quote
Financial Details
WABCO had cash and cash equivalents of $654.9 million as of Jun 30, 2018, compared with $1.14 billion as of Dec 31, 2017. The company’s long-term debt was $855 million as of Jun 30, 2018, a decline from $1.02 billion as of Dec 31, 2017.
In second-quarter 2018, WABCO witnessed a net cash inflow of $77.2 million from operations compared with $88.2 million a year ago.
Share Buyback Update
During the second quarter, the company bought 708,000 shares for $89.2 million. Between June 2011 and June 2018, it repurchased 20,257,912 shares for $1.71 billion in open market transactions.
In 2018, WABCO aims to repurchase shares worth approximately $300 million, subject to market conditions and regularity approvals.
2018 Outlook
For 2018, WABCO anticipates net sales to be approximately $3.85-$3.95 billion compared with the prior expectation of $3.89-$4 billion. The company has reiterated its performance operating margin expectation of 14.3-14.7%. Further, performance adjusted earnings per share is expected to be $7.45-$7.75 versus the prior expectation of $7.30-$7.80.
Zacks Rank & Key Picks
WABCO currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are American Axle & Manufacturing Holdings, Inc. AXL, Oshkosh Corporation OSK and Visteon Corporation VC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Axle has an expected long-term growth rate of 8.1%. Over a year, shares of the company have gained 6.3%.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 6.3% in the past year.
Visteon has an expected long-term growth rate of 15%. Over a year, shares of the company have gained 20.3%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
Visteon Corporation (VC) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
Wabco Holdings Inc. (WBC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
