75.08 0.00 (0.00%)
After hours: 4:50PM EST
|Bid||75.00 x 1100|
|Ask||0.00 x 1100|
|Day's Range||73.99 - 75.74|
|52 Week Range||65.09 - 115.40|
|Beta (3Y Monthly)||1.40|
|PE Ratio (TTM)||23.46|
|Earnings Date||Feb 25, 2019|
|Forward Dividend & Yield||0.48 (0.67%)|
|1y Target Est||95.40|
Wabtec Corp. (NYSE: WAB), which is set to close on a merger with GE Transportation (NYSE: GE) on Feb. 25, is seeking “massive concessions” in pending agreements with the United Electrical, Radio, and Machine Workers of America, according to a news release from the union Wednesday. The move could impact operations at the Erie Locomotive Plant, one of the division’s most profitable facilities. “Under the current agreement with GE, UE members run a highly profitable plant, and are rewarded with good jobs and the freedom to spend time with their families and contribute to their community,” said Scott Slawson, UE Local 506 president, in a prepared statement.
Moody's Investors Service ("Moody's") downgraded the ratings of Westinghouse Air Brake Technologies Corp. ("Wabtec"), with the senior unsecured to Ba1 from Baa3. At the same time, Moody's has assigned to Wabtec a Corporate Family Rating (CFR) of Ba1, a Probability of Default rating of Ba1-PD, and a Speculative Grade Liquidity rating of SGL-2.
Wabtec (WAB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
WILMERDING, Pa., Feb. 12, 2019 -- Wabtec Corporation (NYSE: WAB) today announced that its chief operating officer, Stephane Rambaud-Measson, has resigned from his position and.
This weekend's Barron's cover story reveals the latest ranking of the most sustainable U.S. companies. Other featured articles discuss whether a new wave of financial mergers is coming and stocks that ...
Last week was busy, with Amazon, Wabtec, UPMC, and not one but two malls making headlines. Here's a look back at the week's top stories.
The railroad-equipment maker’s battered shares look alluring, despite worries about the merger with GE Transportation
Investors have been waiting for over two years now for General Electric (NYSE:GE) to bottom. Since ending 2016 above $30, General Electric stock has been a disaster. GE stock would lose 80% of its value on its way to a nine-year low of $6.66 in December.But for the first time since 2016 (at least), there's real hope that the worst is over for GE. Before a pullback over the past few sessions, General Electric stock had bounced some 58% from those lows. That was its biggest rally since 2013. The company's Q4 earnings missed expectations, but as Larry Ramer detailed, GE's post-earnings commentary sparked optimism about the company's turnaround plans. Source: Shutterstock With GE stock back near $10, however, this looks like a case of too far, too fast. I argued back in May that a reasonable sum-of-the-parts analysis valued General Electric stock in the $9-$11 range. And it seems like investors, after the initial burst of GE stock, are coming to the same conclusion.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons You Want Boeing Stock in Your Portfolio Developments since then haven't materially changed the value of GE stock. GE still has a debt problem; it still has a pension issue; and management sill admits that it will take years to fix the company's Power business.And so the optimism about GE stock, particularly after the Q4 report, looks a bit overdone. There are finally signs of hope for General Electric stock. But it will also take GE a long time to fix itself, and there are real questions about how much a fixed GE is worth. GE Stock Rallies After Its EarningsBroadly, I understand why there's optimism about GE stock at the moment. Larry Culp, who had tremendous success at Danaher (NYSE:DHR), took over as CEO in October. After GE struggled (to put it mildly) under Jeffrey Immelt and then John Flannery, that move alone helped restore some confidence in GE stock. (Indeed, GE shares rose on the news.)It's difficult to think of a company more in need of fresh blood in upper management roles. It's also hard to think of a company with more room for improvement.Culp's promise during the Q4 conference call to focus on paying down debt and fixing the Power business added to the turnaround case, as the CEO seemed well-prepared and realistic, but still upbeat about GE's future.So investors believe there's now someone who can fix GE's problems and that there's a path to do so. How General Electric Stock Can RecoverAt this point, GE bulls aren't unaware of the company's problems. Debt is an issue: the company's calculation of net debt (which includes pension and capital leases) totaled $121 billion at the end of 2018. That's greater than the market capitalization of GE stock. And the size of the debt load, plus GE's weakening profitability, led the three major rating agencies to downgrade GE debt late last year.But GE has myriad ways to raise cash. It's going to sell down its stake in Baker Hughes(NYSE:BHGE). Its healthcare IPO will lower its debt by about $18 billion and provide it with some cash in the process. The merger of GE's locomotive business with Wabtec (NYSE:WAB) will bring in a few billion dollars as well.Obviously, GE will lose cash flow as a result of these deals. But CFO Jamie Miller, on the Q4 call, estimated that some $50 billion of capital would be brought in over the next few years. Even after some of those funds are transferred back to GE Capital, the industrial side of the business should be able to cut its debt by over $30 billion.Meanwhile, the businesses that will remain, other than Power, look attractive. The Renewable Energy business is small by GE standards, but it's both profitable and growing. The Aviation business is even better, and investors like that sector, as shown by the performance of stocks like Boeing (NYSE:BA) and RBC Bearings (NASDAQ:ROLL).So GE could conceivably recover. Its asset sales will improve its balance sheet. From there, a smaller, more nimble GE can drive profits from Aviation and Renewable Energy. And if GE can fix the Power division, it can exceed expectations. Reasons for CautionInvestors, then, have bid up GE stock because: a) they see a path to a turnaround; and, b) they believe Culp is the right CEO to lead those efforts. Truthfully, I'm not sure those investors are wrong on either front.But there are two questions after the big, recent rally. The first is GE Capital. A small charge in Q4 almost helped the cause because it suggested that GE was being honest in its accounting (something that hasn't always been the case) and that there were no more major problems left in that business.Just a year ago, the company disclosed a $6 billion-plus charge related to its long-term-care-insurance business. Investors have been worried that another proverbial shoe is likely to drop.Culp, in the Q&A portion of the Q4 call, was asked directly whether there were any more "skeletons in the closet," and replied that the company was "encouraged" by its "review of the unit." That said, GE Capital remains an accounting nightmare and it's far from out of the woods. The Valuation of GE StockThe broader issue, however, is valuation. It's tempting to believe that since GE stock went from $32 to under $7, it can rally back to $32 in time. That's unlikely to be the case, however. The valuation of the Power business isn't coming back; even management admitted on the Q4 call that the business has to shrink. GE Capital is much more dangerous than investors realized even 18 months ago.And after the rally, GE stock really isn't that cheap. GE's forward price-earnings multiple of around 11.5 doesn't seem that onerous. But GE's earnings have outpaced its cash flow for some time and will continue to do for several years. Its industrial-free-cash flow was just $4.5 billion in 2018, and GE expects it to decline in 2019.Power will take years to fix. The asset sales will help the balance sheet, but they will undercut its profitability. And GE still is going to have over $80 billion in net debt even after selling many of its better assets (including the Healthcare business).The turnaround of GE stock could succeed. But it's going to take years. If the economy turns in the meantime, or if GE stumbles, it will take even longer. And this is a business that's still generating minimal operating-cash flow and facing significant risks from GE Capital.Again, I argued in May that General Electric stock was worth $9-$11. I don't think that any of GE's recent moves have notably changed that assessment. Meanwhile, Power looks worse than it did nine months ago.Maybe Culp can find a way to make the company more valuable, but with GE stock just shy of $10, and that value still years away from materializing, I'm not sure investors need to rush to buy GE stock. And I understand why some investors, at least, have rushed to sell General Electric stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monster Growth Stocks to Buy for 2019 and Beyond * 7 Cloud Stocks To Buy Now * 5 Undervalued Stocks to Invest In Compare Brokers The post General Electric Stock Has Rallied Too Far, Too Fast appeared first on InvestorPlace.
Publicly traded rail technology firm considering office option in the city as it works to complete merger.
Westinghouse Air Brake Technologies Corp NYSE:WABView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and declining Bearish sentimentShort interest | NeutralShort interest is moderately high for WAB with between 10 and 15% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on February 6. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding WAB totaled $2.23 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
NEW YORK, Feb. 06, 2019 -- In new independent research reports released early this morning, Market Source Research released its latest key findings for all current investors,.
Wabtec Corporation (NYSE: WAB) announced in a news release Monday that its merger with General Electric Transportation (NYSE: GE) is expected to close on Feb. 25. "We look forward to completing our merger with GE Transportation later this month,” said Wabtec CEO Raymond Betler, in a prepared statement.
GE announced last year that it would merge its transportation business with U.S. rail equipment manufacturer Wabtec in a more than $11 billion deal, leaving GE and its shareholders with just under half of the combined business. Based on the number of shares of GE and Wabtec common stock outstanding on Dec. 31, GE shareholders are also expected to get about 0.005403 of a share of Wabtec common stock for each share of GE share held. Following the closing of the deal, Wabtec will own 50.8 percent of the combined company, with GE and its shareholders owning the rest.
Wabtec Corporation (WAB) said it expects to complete its merger with GE Transportation, a business unit of GE (GE), on Feb. 25, subject to certain closing conditions being satisfied as of the closing date. At closing, Wabtec plans to report its 2018 fourth quarter and full year results, and to provide 2019 financial guidance for the combined company. Wabtec Corporation (www.wabtec.com) is a leading global provider of equipment, systems and value-added services for transit and freight rail. Through its subsidiaries, Wabtec manufactures a range of products for locomotives, freight cars and passenger transit vehicles.
GE (GE) announced today that the Finance and Capital Allocation Committee of the GE Board of Directors has set a record date of February 14, 2019 for the spin-off of Transportation Systems Holdings Inc. (“SpinCo”), which will hold a portion of GE Transportation, a business unit of GE. Subject to the satisfaction or waiver of customary closing conditions, on the distribution date for the spin-off, GE will distribute all of the shares of SpinCo common stock to GE shareholders as of the record date by means of a pro rata distribution. As previously announced, immediately following the spin-off, SpinCo will merge with a subsidiary of Wabtec Corporation (WAB), and SpinCo will continue as the surviving company.
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General Electric's (GE) fourth-quarter results suffer from weak margins that more than offset improvement in revenues. Several restructuring actions are being taken to benefit the company in the long run.
Never let it be said that the General Electric (NYSE:GE) saga hasn't been an interesting one. Whether or not you own General Electric stock, to see this once-iconic industrial name fall out of favor and then fight so hard for its survival has been fascinating to watch. It's also turned into an incredible case study of what not to do, only to then become an -- even if not yet definitely successful -- example of a respected turnaround effort. The challenge for current and would-be owners of General Electric stock is looking past the noise and dust and figuring out what's really going on with the company. It's still a moving target, with the GE stock price ebbing and flowing thanks to an ever-changing set of valuation criteria. But a handful of these factors are important enough and permanent enough to focus on right now. Here's a look at the top three pros and cons of General Electric stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks With Too Much Riding On China ### 3 Pros of General Electric Stock 1.Improving Investor Sentiment Just a few months ago, GE could do nothing right. Falling from a 2016 peak near $33 to what finally looked like a bottom near $12 in September of last year, General Electric stock had the rug pulled out from underneath it again in November. In December, it fell below $7. Since then, GE stock has bounced back to $9. That price is still only a fraction of its former self. But it's the most sustained bullishness towards General Electric stock we've seen from investors in years. That's a start. 2\. New, Outsider CEO Sometimes a new CEO has to have prior experience in a sector related to the company he or she is leading. Other times, the CEO needs to have worked for years at the company. But occasionally an outsider's point of view is needed to see what others can't (or won't) about a company's implosion. Larry Culp, the former CEO of Danaher (NYSE:DHR), thus far has been a fresh set of eyes that have sought the truth, good or bad. Truth-seeking can lead to intelligent decision-making. Culp's approach contrasts with that of his predecessor, longtime GE CEO Jeff Immelt, who in retrospect has been criticized for cultivating a "success theater" that failed to solve problems. 3\. Pushing Harder to Divest He'll only go down as a footnote in GE's history, but between Immelt and Culp, John Flannery was at the helm for roughly a year. He was brought in largely to repair the damage sustained under Immelt's watch. Flannery sought to accomplish that task primarily by selling some divisions and divesting from others to offset the company's growing debt Flannery was in charge when General Electric's locomotive unit was sold to Westinghouse Air Brake Technologies (NYSE:WAB). He wasn't moving quickly enough to suit most shareholders, though, while Culp seems to have picked up the pace. ### 3 Cons of GE Stock 1.Tons of Debt It's the 800-pound gorilla in the room. As of the end of the third quarter, General Electric was sitting on $115 billion of debt and another $70 billion worth of insurance and compensation liabilities. It can't afford to leave those liabilities on the books, but selling revenue-bearing assets may not help enough to matter. Gordon Haskett analyst John Inch recently crunched the numbers, concluding "By subtracting asset sale proceeds from total company liabilities of $225bn to $274bn, we derive total company (post sale) liabilities of $144bn to $203bn. After then incorporating the market value of the Industrial assets ($71bn to $78n) and Capital assets ($111bn to $129bn), we impute a value for GE equity between -$2.47 to +$7.11, or just over $2/share at the midpoint." 2\. The Power Division GE is a diversified conglomerate that needs all of its divisions to perform well. But the one unit that absolutely has to shine isn't and may not for a long, long while. That's the Power arm, which accounts for roughly one-fifth of the company's revenue. The unit's sales fell 33% during the third quarter, resulting in a significant loss for the unit. Moreover, the Power division didn't perform much better in Q4.. 3\. Analysts Are Still Skeptical About General Electric Stock While investors may be on board with the turnaround effort thus far, analysts aren't. Any rebound that's going to last will need the support of these pros sooner rather than later. As of the latest look, the analyst community collectively rates General Electric stock closer to a "Hold" than a "Buy" (that's alarming, given analysts' generally bullish bias). And that's after a number of upgrades of General Electric stock that occurred between October and December. The doubters aren't letting up. JP Morgan analyst Stephen Tusa, right before GE's Q4 earnings were released , reiterated his concerns about its cash flow. ### The Bottom Line on General Electric Stock There's more working in favor of GE stock than not right now, even if part of that tailwind is rooted in the fact that things literally couldn't get much, if any, worse. All of the company's problems are on the table and priced into General Electric stock. Nevertheless, sentiment can overwhelm facts, and right now General Electric stock has proven it's vulnerable to mere doubts. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Machine-Learning Stocks to Buy for a Smarter Portfolio * 10 Stocks to Sell in February * 10 Triple-A Stocks to Buy in February Compare Brokers The post 3 Pros, 3 Cons of General Electric Stock appeared first on InvestorPlace.
Shares of General Electric fell again on Tuesday amid concern over earnings following a change to the terms of the industrial giant’s deal to combine its transportation business with Wabtec, a maker of railroad cars.