Rail equipment company Westinghouse Air Brake Technologies (NYSE:WAB) will be announcing earnings results tomorrow morning. Here’s what to expect.
Wabtec met analysts’ revenue expectations last quarter, reporting revenues of $2.66 billion, up 4.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue 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 2.8% year on year to $2.60 billion, slowing from the 9.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.7% on average.
Looking at Wabtec’s peers in the heavy transportation equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cummins’s revenues decreased 1.1% year on year, beating analysts’ expectations by 4.7%, and Oshkosh reported revenues up 6.3%, topping estimates by 8.6%. Cummins traded up 6.2% following the results while Oshkosh was also up 21.6%.
Read our full analysis of Cummins’s results here and Oshkosh’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 2.4% on average over the last month. Wabtec is up 8.6% during the same time and is heading into earnings with an average analyst price target of $215.51 (compared to the current share price of $209.10).
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