WABCO Holdings Earnings: Here’s Why Investors Don’t Like These Results

WABCO Holdings Inc. (NYSE:WBC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.75%.

WABCO Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.24% to $1.3 in the quarter versus EPS of $1.19 in the year-earlier quarter.

Revenue: Rose 6.77% to $678.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WABCO Holdings Inc. reported adjusted EPS income of $1.3 per share. By that measure, the company beat the mean analyst estimate of $1.25. It beat the average revenue estimate of $672.76 million.

Quoting Management: “In Q2 2013, WABCO delivered yet another record quarterly performance fueled by our continued ability to outperform a sluggish market. Indeed, WABCO’s revenues increased 6.8 percent year on year, helped by growth of 8.1 percent in aftermarket revenues,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer.

Key Stats (on next page)…

Revenue increased 5.2% from $644.7 million in the previous quarter. EPS increased 11.11% from $1.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.22 to a profit $1.19. For the current year, the average estimate has moved up from a profit of $4.78 to a profit of $4.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)