US Equity Market Updates for October 22
WABCO’s price movement
WABCO Holdings (WBC) has a market cap of $6.4 billion. WABCO’s YTD (year-to-date) price movement has been mixed of ups and downs in 2015. After the 3Q15 earnings report, WBC rose by 1.6% to close at $110.04 per share as of October 22, 2015. The price movement on a weekly, monthly, and a YTD basis is 0.19%, 5.4%, and 5.0%, respectively.
The stock has broken support levels throughout 2015. Currently, it’s trading at 1.7% above the 20-day moving average, 1.8% below the 50-day moving average, and 5.9% below its 200-day moving average.
The iShares Asia/Pacific Dividend 30 Fund (DVYA) invests 3.0% of its holdings in WABCO. The ETF tracks a dividend-weighted index of 30 of the highest-dividend-yielding companies in the Asia-Pacific region. The YTD price movement of DVYA is -14.7% as of October 21, 2015. The ALPS International Sector Dividend Dogs (IDOG) invests 2.1% of its holdings in WABCO.
The competitors of WABCO Holdings (WBC) and their market caps are:
General Motors Company (GM) — $56.1 billion
Cummins (CMI) — $20.0 billion
PACCAR (PCAR) — $19.1 billion
Meritor (MTOR) — $1.0 billion
Performance of WABCO in 3Q15
The company has reported net revenue of $643.6 million in 3Q15, a decrease of 2.6% when compared to the net revenue of $661.1 million in 2Q15. The cost of sales as a percentage of sales has fallen by 8.8% in 3Q15. The net income and EPS (earnings per share) have fallen to $41.3 million and $0.67 per share in 3Q15, a decrease of 39.5% and 40.2% on a quarterly basis. The cash and cash equivalents have increased to $544.1 million in 3Q15. The current ratio has fallen to 3.00, and the debt-to-equity ratio has fallen to 2.15 in 3Q15 as compared to the current ratio and the debt-to-equity ratio of 3.06 and 1.98 in 2Q15.
Some of WABCO’s key 3Q15 highlights were:
WABCO Holdings has entered into a long-term supply agreement with JMCH to expand into the heavy truck segment.
WABCO Holdings has joined the Commercial Vehicle Safety Alliance to improve the safety of its brakes.
The company has expanded its software engineering and shared services capabilities with the opening of new facilities in Chennai.
The company has entered into a new long-term agreement as a major supplier of a range of advanced and conventional technologies with Russia’s heavy-duty commercial vehicle manufacturers.
The company has stopped manufacturing operations at two production facilities in Western Europe to preserve competitiveness for mechanical products.
WABCO Holdings is a supplier of technologies and control systems to improve the safety and efficiency of commercial vehicles. It provides products for braking, stability, suspension, transmission automation, and aerodynamics.
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