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Wabtec to Benefit From Bloom Engineering Buyout: Here's How

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Wabtec Corporation (WAB - Free Report) is strengthening its operations with strategic acquisitions. To this end, Wabtec announced the acquisition of Bloom Engineering, Inc., a provider of industrial heating applications. Wabtec acquired Bloom Engineering in the fourth quarter for $69 million in cash, financed through cash on hand and a revolving credit facility.

Bloom Engineering will be joining Wabtec’s Freight and Industrial Components Group.

Mike Fetsko, president of Wabtec’s Freight & Industrial Components Group, stated, “This is another exciting addition to Wabtec. Bloom Engineering is a great fit within our Heat Transfer and Energy Solutions business, and we already serve many of the same customers. Our shared vision toward driving customer productivity within their industrial processes will enable us to deliver a more comprehensive portfolio for our customers to operate more efficiently and sustainably.”

How Will Wabtec Benefit?

The inclusion of Bloom Engineering is expected to be immediately accretive to WAB’s earnings, excluding transaction costs (with strong synergies to be realized over the next three years).

The integration of Bloom Engineering’s advanced technologies in burners, combustion systems, and overall services for industrial and process heating applications should strengthen Wabtec’s portfolio of heat transfer and energy solutions. Bloom Engineering’s extensive design and engineering expertise complements Wabtec’s existing capabilities.

WAB's Zacks Rank & Price Performance

Wabtec currently carries a Zacks Rank #3 (Hold).

WAB shares have gained 51.3% in the past year, outperforming its industry and the S&P 500, of which the company is a key member.

One-Year Price Comparison

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Stocks to Consider

Some better-ranked stocks from the Zacks Transportation sector are C.H. Robinson Worldwide, Inc. (CHRW - Free Report) ) and Expeditors International of Washington, Inc. (EXPD - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 10.29%.

The Zacks Consensus Estimate for CHRW’s 2024 earnings has been revised 6.4% upward over the past 90 days. CHRW has an expected earnings growth rate of 33.3% for 2024. Shares of CHRW have gained 20.3% so far this year.

EXPD has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining quarter and met in the other quarter), delivering an average surprise of 4.75%.

The Zacks Consensus Estimate for EXPD’s 2024 earnings has been revised 6.4% upward over the past 90 days. EXPD has an expected earnings growth rate of 8.38% for 2024. Shares of EXPD have lost 12.4% so far this year.


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

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