- Improved Earnings Forecast: Westinghouse Air Brake has raised its FY adjusted EPS forecast to a range of $7.45 to $7.65, from the previous forecast of $7.20 to $7.50. The market estimate was $7.49.
- Steady Sales Outlook: The company’s sales forecast remains unchanged at $10.25 billion to $10.55 billion, with the market estimating $10.43 billion.
- Third Quarter Performance:
- Adjusted EPS increased to $2.00 from $1.70 year-over-year, beating the estimate of $1.88.
- EPS rose to $1.63 from $1.33 year-over-year.
- Net sales grew by 4.4% year-over-year to $2.66 billion, slightly below the estimate of $2.68 billion.
- Segment Performance:
- Freight net sales were $1.93 billion, up 2.1% year-over-year, below the estimate of $2 billion.
- Transit net sales reached $733 million, soaring 11% year-over-year and surpassing the estimate of $693.7 million.
- Operating Income and Margins:
- Operating income increased by 17% year-over-year to $433 million.
- The adjusted operating margin improved to 19.7% from 17.9% year-over-year, exceeding the estimate of 18.5%.
- Optimistic 2024 Outlook: The company expects over a 27.5% increase in adjusted diluted EPS at the midpoint for 2024 compared to 2023.
- Strong Cash Flow Expectations: Wabtec anticipates an operating cash flow conversion of greater than 90 percent for the full year 2024.
- Market Sentiment: There are 8 buy ratings, 4 hold ratings, and 0 sell ratings for the company, indicating positive market sentiment.
“`
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 a global company that offers technology solutions for the rail industry. Specializing in manufacturing products for various rail vehicles like locomotives, freight cars, and passenger transit vehicles, Wabtec also engages in building new locomotives and providing aftermarket services. As per Smartkarma Smart Scores, Wabtec receives a high Momentum score of 5, indicating a positive trend that could potentially drive the company’s future growth.
While Wabtec Corp showcases strong growth prospects with a score of 4, indicating a promising future trajectory, other factors like Value, Dividend, and Resilience score moderately at 3. This suggests that although the company may not be undervalued, it still holds potential for expansion and has a certain level of financial stability. Investors looking for a company with a strong growth outlook and a solid momentum trend might find Wabtec Corp an appealing option within the rail technology sector.
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
