Rail equipment company Westinghouse Air Brake Technologies (NYSE: WAB) will be reporting results tomorrow before the bell. Here’s what you need to know.
Wabtec missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $2.58 billion, up 2.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Wabtec a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Wabtec’s revenue to grow 5.4% year on year to $2.63 billion, slowing from the 13.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wabtec has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Wabtec’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Greenbrier’s revenues decreased 11.7% year on year, missing analysts’ expectations by 15.2%, and Lindsay reported revenues up 23.5%, topping estimates by 4%. Greenbrier traded down 11.4% following the results while Lindsay was also down 8%.
Read our full analysis of Greenbrier’s results here and Lindsay’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the heavy machinery stocks have shown solid performance, the group has generally underperformed, with share prices down 11.3% on average over the last month. Wabtec is down 11.5% during the same time and is heading into earnings with an average analyst price target of $208.75 (compared to the current share price of $167.06).
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