- Adjusted EPS Beats: Westinghouse Air Brake’s adjusted earnings per share (EPS) for Q2 stands at $1.96, surpassing last year’s $1.41 and the estimate of $1.88.
- EPS Improvement: The actual EPS was $1.64 compared to $1.06 last year.
- Net Sales Growth: Net sales increased by 9.8% year-over-year (y/y) to $2.64 billion, exceeding the estimate of $2.62 billion.
- Freight Net Sales: Freight net sales came in at $1.92 billion, up 12% y/y, meeting the estimate of $1.92 billion.
- Transit Net Sales: Transit net sales were $724 million, a 3.6% increase y/y, surpassing the estimate of $714.1 million.
- Operating Income: Operating income reached $430 million, a 38% increase y/y, though below the estimate of $486.6 million.
- Adjusted Gross Profit: Adjusted gross profit hit $880 million, a rise of 20% y/y, beating the estimate of $836.2 million.
- Adjusted Operating Income: Adjusted operating income was $510 million, a 29% increase y/y, also surpassing the estimate of $486.6 million.
- Adjusted Operating Margin: The adjusted operating margin improved to 19.3% from 16.4% y/y, slightly above the estimate of 19%.
- EPS Guidance Raised: The company raised its 2024 Adjusted Diluted EPS guidance to a range of $7.20 to $7.50, an increase of 24.2% from 2023 at the midpoint.
- Strong Cash Flow: For the full year 2024, Wabtec expects an operating cash flow conversion rate of greater than 90%.
- Positive Market Demand: The company notes strong demand in its end markets and sees significant opportunities for further growth due to the quality and reliability of its products.
- Analyst Ratings: The stock has 8 buy ratings, 4 hold ratings, and no sell ratings.
A look at Wabtec Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Wabtec Corp, also known as Westinghouse Air Brake Technologies Corporation, is set for a promising long-term outlook based on the Smartkarma Smart Scores. With a strong momentum score of 5, the company is showing robust growth potential, indicating positive performance in the future. Additionally, Wabtec Corp received a growth score of 4, highlighting its anticipated expansion and development within the rail industry. These factors suggest that the company is well-positioned for long-term success.
While the dividend score for Wabtec Corp is moderate at 2, the value and resilience scores stand at 3, signaling a solid foundation and stability for the company. Overall, Wabtec Corp‘s diversified range of technology products and services for locomotives, freight cars, and passenger transit vehicles positions it favorably for sustained growth and profitability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
