Rail equipment company Westinghouse Air Brake Technologies (NYSE: WAB) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Wabtec met analysts’ revenue expectations last quarter, reporting revenues of $2.95 billion, up 13% year on year. It was a slower quarter for the company, with a significant miss of analysts’ organic revenue estimates and full-year revenue guidance meeting analysts’ expectations.
Is Wabtec a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Wabtec’s revenue to grow 13.7% year on year, improving from the 2.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wabtec has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Wabtec’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier’s revenues decreased 31.6% year on year, missing analysts’ expectations by 5.9%, and Lindsay reported a revenue decline of 5.1%, falling short of estimates by 5.1%. Greenbrier’s stock price was unchanged after the resultswhile Lindsay was down 2.9%.
Read our full analysis of Greenbrier’s results here and Lindsay’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4% on average over the last month. Wabtec is down 6.8% during the same time and is heading into earnings with an average analyst price target of $302.83 (compared to the current share price of $257.98).
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