Back to top

Image: Bigstock

ABB Strengthens Robotic Offerings With Codian Robotics Buyout

Read MoreHide Full Article

ABB Ltd announced that it acquired Ede, Netherlands-based company Codian Robotics B.V. on Oct 1. The financial terms of the transaction have not been disclosed by the company.

It is worth noting here that ABB’s share price increased 1% on Oct 2, closing the trading session at $25.89.

Inside the Headlines

As noted, Codian Robotics is a delta robot provider for customers in the pharmaceuticals, and food and beverage industries. The products are mainly used for pick and place jobs that require very high precision and hygiene.

The Codian Robotics buyout will help ABB expand the technological expertise and product portfolio of the Robotics & Discrete Automation segment. It is worth noting here that the segment offers a wide range of robotic solutions and applications suite. Products offered are mainly used in process, discrete automation and transportation industries.

In second-quarter 2020, the segment generated revenues of $629 million (representing 9.9% of ABB’s total revenues in the quarter). On a year-over-year basis, the segment’s sales declined 26% (orders fell by 28%) due to softness in the general industry, automotive and machine builder-related markets. For the third quarter of 2020, ABB predicts revenues and orders of this segment to decline on a year-over-year basis.

Zacks Rank, Price Performance and Estimates

ABB currently has a market capitalization of $56.1 billion and a Zacks Rank #3 (Hold). The company stands to gain from investments in organic growth, cost-reduction actions, market presence and technological expertise. However, the volatile oil market and the adverse impacts of the pandemic on its operations are expected to be concerning.

In the past three months, the company’s share price has increased 7% compared with the industry’s growth of 7.3%.




 

Currently, the Zacks Consensus Estimate for ABB’s earnings is pegged at 80 cents for 2020 and $1.10 for 2021, reflecting no change from the respective 60-day-ago figures.

Stocks That Warrants a Look

Three better-ranked stocks in the industry are Regal Beloit Corporation (RBC - Free Report) , EnerSys (ENS - Free Report) and Franklin Electric Co., Inc. (FELE - Free Report) . While Regal Beloit currently sports a Rank #1 (Strong Buy), both EnerSys and Franklin Electric carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these companies have improved for the current year. Further, earnings surprise for the last reported quarter was 46.15% for Regal Beloit, 35.29% for EnerSys and 14.89% for Franklin Electric.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RBC Bearings Incorporated (RBC) - free report >>

Franklin Electric Co., Inc. (FELE) - free report >>

Enersys (ENS) - free report >>

Published in