WABCO Q2 Profit Down, Results Miss Estimates; Updates 2014 Outlook - Quick Facts

(RTTNews) - Autoparts supplier WABCO Holdings Inc. (WBC) said that its second-quarter 2014 net income attributable to the company declined to $75.0 million or $1.23 per share from $83.2 million or $1.31 per share in the same quarter last year.

But, Performance net income attributable to the company was $86.6 million or $1.42 per share, up from $82.4 million or $1.30 per share a year ago. Analysts polled by Thomson Reuters expected the company to report earnings of $1.45 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter grew to $735.0 million from $678.2 million last year. Wall Street expected revenues of $750.02 million for the quarter.

WABCO tightened its previously disclosed guidance for full year 2014. It expects full year 2014 sales growth to now range from 6 to 9 percent in local currencies, versus previous guidance to range from 6 to 11 percent; performance operating margin to now range from 12.9 to 13.3, versus previous guidance to range from 12.8 to 13.6 percent; and operating margin on a U.S. GAAP basis to now range from 12.2 to 12.6 percent, versus previous guidance to range from 12.4 to 13.2 percent, resulting in earnings per share on a performance basis to now range from $5.45 to $5.75, versus previous guidance to range from $5.30 to $5.80 and earnings per share on a U.S. GAAP basis to now range from $4.77 to $5.07, versus previous guidance to range from $4.78 to $5.28.

Wall Street currently is looking for fiscal year 2014 earnings of $5.70 per share on annual revenues of $2.99 billion.

WABCO reiterated that it expects in 2014 to convert between 80 and 90 percent of its net income attributable to the company into free cash flow, excluding payments associated with streamlining, separation and acquisition items.