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Wabtec (WAB) Expands Further Through $230M L&M Radiator Buyout
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Wabtec Corporation (WAB - Free Report) announced that it has taken over L&M Radiator in a bid to expand its Mining portfolio. L&M Radiator is a manufacturer of heavy-duty equipment radiators and heat exchangers.
The all-cash deal is valued at $230 million. WAB has financed the deal through cash on hand in addition to a revolving credit facility. Management expects the L&M buyout to boost its EPS (excluding transaction costs) with immediate effect.
The acquisition allows WAB to expand its installed base and recurring revenues in mining, engine cooling and heat transfer solutions. The buyout expedites the scope for growth across L&M’s innovative products domestically as well as internationally. Notably, L&M MESABI heavy-duty equipment radiators and heat exchangers will create a comprehensive thermal management portfolio. The addition of L&M products to WAB’s product portfolio allows customers to realize efficiencies with respect to maintenance costs, safety and fleet availability.
Expressing delight at the L&M buyout, Mike Fetsko, president of Wabtec’s Freight & Industrial Components operations, said, "This transaction will further Wabtec’s presence in premium heat transfer solutions and will extend and complement Wabtec’s mining products portfolio. In addition, L&M’s technology further enhances Wabtec’s mission to develop clean energy solutions for operations in mining."
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 22.4% upward over the past 60 days.
Global Ship Lease is being aided by the bullish sentiment surrounding the containership market. GSL’s strong balance sheet is an added positive. An uptick in trading volumes bodes well for GSL.
The Zacks Consensus Estimate for current-year earnings has moved up 4.2% over the past 60 days. GSL outpaced the Zacks Consensus Estimate for earnings in each of the last four quarters, the average beat being 15.64%.
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Wabtec (WAB) Expands Further Through $230M L&M Radiator Buyout
Wabtec Corporation (WAB - Free Report) announced that it has taken over L&M Radiator in a bid to expand its Mining portfolio. L&M Radiator is a manufacturer of heavy-duty equipment radiators and heat exchangers.
The all-cash deal is valued at $230 million. WAB has financed the deal through cash on hand in addition to a revolving credit facility. Management expects the L&M buyout to boost its EPS (excluding transaction costs) with immediate effect.
The acquisition allows WAB to expand its installed base and recurring revenues in mining, engine cooling and heat transfer solutions. The buyout expedites the scope for growth across L&M’s innovative products domestically as well as internationally. Notably, L&M MESABI heavy-duty equipment radiators and heat exchangers will create a comprehensive thermal management portfolio. The addition of L&M products to WAB’s product portfolio allows customers to realize efficiencies with respect to maintenance costs, safety and fleet availability.
Expressing delight at the L&M buyout, Mike Fetsko, president of Wabtec’s Freight & Industrial Components operations, said, "This transaction will further Wabtec’s presence in premium heat transfer solutions and will extend and complement Wabtec’s mining products portfolio. In addition, L&M’s technology further enhances Wabtec’s mission to develop clean energy solutions for operations in mining."
Zacks Rank & Key Picks
Wabtec currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) and Global Ship Lease (GSL - Free Report) . CPA currently sports a Zacks Rank #1 (Strong Buy) while GSL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 22.4% upward over the past 60 days.
Global Ship Lease is being aided by the bullish sentiment surrounding the containership market. GSL’s strong balance sheet is an added positive. An uptick in trading volumes bodes well for GSL.
The Zacks Consensus Estimate for current-year earnings has moved up 4.2% over the past 60 days. GSL outpaced the Zacks Consensus Estimate for earnings in each of the last four quarters, the average beat being 15.64%.