The 10-second takeaway
For the quarter ended June 30 (Q2), WABCO Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share increased.
Gross margins dropped, operating margins shrank, net margins grew.
WABCO Holdings reported revenue of $678.2 million. The eight analysts polled by S&P Capital IQ expected revenue of $672.5 million on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $635.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.30. The eight earnings estimates compiled by S&P Capital IQ anticipated $1.25 per share. Non-GAAP EPS of $1.30 for Q2 were 9.2% higher than the prior-year quarter's $1.19 per share. GAAP EPS of $1.31 for Q2 were 14% higher than the prior-year quarter's $1.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 30.5%, 30 basis points worse than the prior-year quarter. Operating margin was 12.7%, 250 basis points worse than the prior-year quarter. Net margin was 12.3%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $663.8 million. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $2.65 billion. The average EPS estimate is $4.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 235 members out of 241 rating the stock outperform, and six members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give WABCO Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WABCO Holdings is outperform, with an average price target of $80.70.
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