Modine (MOD) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this heating and cooling products maker have returned -8.5% over the past month versus the Zacks S&P 500 composite's +1.8% change. The Zacks Automotive - Original Equipment industry, to which Modine belongs, has lost 10.3% over this period. Now the key question is: Where could the stock be headed in the near term? ...

Core Viewpoint - Modine Manufacturing Company (MOD) is positioned favorably due to increasing demand for zero-emission and high-density cooling solutions, particularly in data centers and electric vehicle platforms, despite recent market volatility [2][4]. Financial Performance - MOD reported FQ1'25 revenues of $661.5 million, reflecting a 9.6% quarter-over-quarter (QoQ) and 6.2% year-over-year (YoY) increase, with adjusted EPS of $1.04, up 35% QoQ and 22.3% YoY [4]. - The Climate Solutions segment generated revenues of $357.3 million, a 35% QoQ and 10% YoY increase, with a gross margin of 28.2%, up 2.3 points QoQ and 1.8 points YoY [4]. - The Performance Technologies segment saw revenues of $309 million, down 10.2% QoQ and 9.9% YoY, attributed to softer automotive demand [4]. Growth Projections - The company raised its FY2025 midpoint guidance to net sales growth of 8.5% YoY and adjusted EPS growth to $3.80, up from previous estimates of 7.5% and $3.70, respectively [4]. - MOD's capital expenditures reached $100.2 million over the last twelve months, an increase of 80.8% sequentially, allowing for significant expansion in data center capacity [4]. Market Context - Despite a recent pullback in stock price, MOD has outperformed its thermal management peers and the broader market, indicating strong underlying demand for its products [3][4]. - The global spending on public cloud services is projected to grow from $561 billion in 2023 to $823 billion by 2025, with a compound annual growth rate (CAGR) of 21.1%, driven significantly by AI-related workloads [4]. Investment Outlook - MOD's stock is trading at a slight premium to updated fair value estimates, yet it remains an attractive option for growth-oriented investors, with a long-term price target of $151.30, indicating a potential upside of 28.5% [6].

Technical Analysis - Modine (MOD) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a popular trading tool that smooths out price fluctuations and provides trend reversal signals, beneficial for short-term traders [1] Performance Metrics - Over the past four weeks, MOD has gained 9%, and it is currently ranked a Zacks Rank 1 (Strong Buy), suggesting potential for further price increases [2] - Positive earnings estimate revisions have occurred, with one revision higher for the current fiscal year and no revisions lower, leading to an upward movement in the consensus estimate [2] Investment Outlook - The combination of positive earnings estimate revisions and the stock hitting a key technical level positions MOD as a potential investment opportunity for future gains [2]

Core Viewpoint - Modine (MOD) is showing potential for a bullish trend as it has recently reached a key support level and surpassed the 50-day moving average, indicating a positive short-term outlook [1][2]. Technical Analysis - The 50-day simple moving average is a significant indicator for traders and analysts, marking the initial point of an upward or downward trend, and MOD's recent movement suggests it could be on the verge of another rally after increasing by 9% over the past four weeks [2]. - The current technical indicators suggest a bullish trend for MOD, making it an interesting investment opportunity [1]. Earnings Estimates - Recent revisions in MOD's earnings estimates show one upward revision with no downward revisions for the current fiscal year, indicating growing investor confidence in the company's performance [3]. - The consensus estimate for MOD has also increased, further supporting the bullish outlook for the stock [3].

Financial Data and Key Metrics Changes - The company reported a 6% increase in first-quarter sales, driven by acquisitions and organic growth in climate solutions, partially offset by divestitures and planned initiatives in performance technologies [14] - Adjusted EBITDA increased by 25% or $21 million, with an adjusted EBITDA margin of 15.3%, marking the 10th consecutive quarter of year-over-year margin improvement [15] - Adjusted earnings per share rose to $1.04, a 22% increase compared to the prior year [15] Business Line Data and Key Metrics Changes - The climate solutions segment saw a 31% increase in adjusted EBITDA with a margin over 20%, driven by a 138% growth in data center sales, amounting to $94 million [9][10] - Performance technologies experienced a 25% increase in adjusted EBITDA, with an EBITDA margin improvement of 390 basis points, despite a 10% decrease in revenue primarily due to divestitures and lower sales in automotive and off-highway markets [12][14] Market Data and Key Metrics Changes - Data center sales in North America nearly doubled compared to the prior year, reflecting strong demand from hyperscale customers [4][10] - HVAC&R sales increased by 7% or $5 million, while heat transfer product sales declined by 21% or $29 million, primarily due to reduced demand in European markets [10][11] Company Strategy and Development Direction - The company is focusing on strategic acquisitions and investments in high-growth areas, particularly in climate solutions and performance technologies [3][4] - The 80/20 initiative is being utilized to prioritize and invest in the best-performing businesses, leading to improved margins and earnings [3][4][11] - The company plans to continue evaluating its portfolio and divesting from lower-margin businesses while seeking opportunities for growth [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the fiscal year, with expectations for continued growth in data center sales and overall company performance [3][17] - The outlook for fiscal 2025 has been raised, with total company sales growth now projected between 6% to 11%, driven by significant increases in data center sales [17][19] - Management anticipates another year of good cash flow and plans to maintain capital spending in line with the previous year [19] Other Important Information - The company generated $14 million in free cash flow during the first quarter, with a net debt of $363 million, resulting in a leverage ratio of 1.1 [16] - The upcoming Analyst and Investor Day is scheduled for September 11, where further insights into the company's transformation and updated financial targets will be provided [19] Q&A Session Summary Question: Data center performance and future growth - Management indicated that the strong performance in data centers is expected to continue, with capacity expansions planned for the second half of the year [21][22] Question: Heat transfer products outlook - The majority of the revenue drop in heat transfer products was attributed to lower heat pump sales, with expectations for easier comparisons in the second half of the year [23][24] Question: Revenue rationalization targets - The company targets about $100 million in revenue rationalization each year, focusing on divesting from lower-margin businesses [26][27] Question: Guidance for fiscal 2025 - Management provided insights into the expected revenue growth rates across different segments, with a focus on maintaining high single-digit organic growth [28][50] Question: GenSet business outlook - The GenSet business is expected to grow to approximately $120 million in sales for fiscal 2025, reflecting a 20% increase [40] Question: M&A strategy and market conditions - The company is well-positioned for M&A opportunities, with a strong balance sheet and cash flow, while remaining disciplined in evaluating potential acquisitions [58][59]

First Quarter Fiscal 2025 July 31, 2024 NEIL BRINKER President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, and Investor Relations Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-look ...

Exhibit 99.1 Modine Reports First Quarter Fiscal 2025 Results First Quarter Financial Results Racine, WI – July 30, 2024 – Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2024. • Net sales growth between 6 percent to 11 percent • Adjusted EBITDA of $375 million to $395 million, an increase of 19 percent to 26 percent over the prior year • Adjusted earnings per share of $3.65 to $3.95 "Our first qu ...

RACINE, Wisc., July 30, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2024. Revised Fiscal 2025 Outlook: First Quarter Financial Results Selling, general and administrative ("SG&A") expenses increased $21.4 million to $82.8 million. The increase was primarily due to higher compensation-related expenses, including higher incentive compensation driven by improved financial res ...

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While the historical EPS growth rate for Modine is 25.7%, investors should actually focu ...

Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY) and Modine (MOD) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. Currently, AB Volvo has a Zacks Rank of #2 (Buy), while Modine has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VLVLY has an improving earnings out ...