Westinghouse Air Brake Technologies Set to Unveil Q4 Earnings; Analysts Optimistic on Performance
Pittsburgh, Pennsylvania-based Westinghouse Air Brake Technologies Corporation (WAB) stands out as a prominent supplier in technology-driven locomotives, equipment, systems, and services for both freight rail and passenger transit sectors. With a market cap of $34.3 billion, WAB offers a diverse range of products including diesel-electric, battery, and LNG-powered locomotives, alongside marine products, railway electronics, and essential components for braking, HVAC systems, and passenger information systems. The company is scheduled to reveal its fiscal fourth-quarter earnings for 2024 before the market opens on Wednesday, February 12.
Anticipated Earnings Growth and Historical Context
Analysts predict that WAB will announce a profit of $1.73 per share on a diluted basis, reflecting a 12.3% increase from $1.54 per share in the same quarter last year. The company has surpassed consensus estimates in three out of the past four quarters, with one instance of falling short.
For the entire fiscal year, projections indicate WAB will report an earnings per share (EPS) of $7.60, marking a significant climb of 28.4% from $5.92 in fiscal 2023. Furthermore, EPS is expected to rise another 13.2% year over year to $8.60 in fiscal 2025.
Strong Stock Performance Amid Market Trends
Over the last 52 weeks, WAB’s stock has surged 55.6%, significantly outperforming the S&P 500’s 24.6% increase. It has also eclipsed the Industrial Select Sector SPDR Fund’s (XLI) gains of 23.4% during the same period.
Recent Acquisitions and Future Growth Potential
WAB’s growth can be attributed to its recent acquisition of Evident’s Inspection Technologies division, which expanded its digital intelligence capability and added sophisticated inspection solutions to its portfolio. The purchase of Bloom Engineering further strengthened WAB’s freight and industrial components group by introducing advanced combustion technologies, industrial heating solutions, and improvements in customer efficiency and sustainability.
Recent Financial Results Indicate Stability
On October 23, WAB shares dropped by more than 1% after the company reported its Q3 financial results. Revenue reached $2.7 billion, surpassing analysts’ expectations of $2.6 billion. The adjusted EPS came in at $2, exceeding the forecast of $1.87. For the full year, WAB anticipates adjusted EPS to range between $7.45 and $7.65, with revenues expected between $10.3 billion and $10.6 billion.
Analyst Ratings Suggest Positive Outlook
The consensus among analysts remains moderately bullish for WAB stock, earning a “Moderate Buy” rating overall. Out of nine analysts covering WAB, five recommend a “Strong Buy,” one proposes a “Moderate Buy,” and three suggest a “Hold.” The average price target among analysts is $218.56, indicating a potential upside of 9.6% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
