Wabco Holdings (WBC) Tops Q3 EPS by 18c, Beats on Revenues; Boosts FY17 EPS Guidance Above Consensus Estiamtes

Wabco Holdings (NYSE: WBC) reported Q3 EPS of $1.71, $0.18 better than the analyst estimate of $1.53. Revenue for the quarter came in at $827.3 million versus the consensus estimate of $750.33 million.

• Q3 2017 sales of $827.8 million, up 22.6 percent from a year ago and up 18.6 percent in local currencies
• Q3 2017 reported operating margin of 11.3 percent versus 13.0 percent a year ago; performance Q3 2017 operating margin of 14.5 percent, up from 14.1 percent a year ago
• In Q3 2017, WABCO continued to strongly convert income into cash, resulting in net cash from operating activities of $84.1 million
• Q3 2017 reported diluted EPS of $1.30 versus $1.76 a year ago, primarily impacted by an indemnification liability associated with a pre-spin-off non-WABCO related matter and by a Q3 2016 exceptional tax benefit; performance Q3 2017 diluted EPS of $1.71, up from $1.54 a year ago
• Continued to expand WABCO’s platform for growth by completing the acquisition of R.H. Sheppard as a key step toward providing active steering capabilities and at the same time by acquiring full ownership of the Meritor WABCO joint venture in North America
• Raises sales guidance for full-year 2017 to now range from $3,250 million to $3,300 million versus previous guidance from $3,025 million to $3,100 million; sales growth to now range from 13.5 to 15.5 percent in local currencies versus previous guidance from 8 to 11 percent
• Raises reported diluted EPS guidance for full-year 2017 to now range from $5.95 to $6.10 versus previous guidance from $5.74 to $6.04, excluding a one-time pre-tax gain from the Meritor WABCO transaction of approximately $240 million, subject to purchase accounting finalization; and performance full-year 2017 diluted EPS to now range from $6.55 to $6.70 versus previous guidance from $6.05 to $6.35

GUIDANCE:

Wabco Holdings sees FY2017 EPS of $6.55-$6.70, versus the consensus of $6.34.

For earnings history and earnings-related data on Wabco Holdings (WBC) click here.

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