Wabtec (WAB) Q4 Earnings Report Preview: What To Look For
Wabtec (WAB) will announce its Q4 earnings this Wednesday. Analysts expect revenue to grow 10.9% year-on-year to $2.86 billion, with adjusted earnings at $2.08 per share. The company has previously missed revenue estimates four times in two years. In the heavy transportation equipment sector, peers like Greenbrier and PACCAR have reported mixed results. Wabtec's stock has risen 8.2% recently, with an average analyst price target of $249.42, slightly above its current price of $245.23.
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Wabtec met analysts’ revenue expectations last quarter, reporting revenues of $2.89 billion, up 8.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ organic revenue estimates.
Is Wabtec a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Wabtec’s revenue to grow 10.9% year on year to $2.86 billion, improving from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.08 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 missed Wall Street’s revenue estimates four times over the last two years.
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. Greenbrier’s revenues decreased 19.4% year on year, beating analysts’ expectations by 7.7%, and PACCAR reported a revenue decline of 13.7%, topping estimates by 2.5%. Greenbrier traded down 10.3% following the results while PACCAR’s stock price was unchanged.
Read our full analysis of Greenbrier’s results here and PACCAR’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 8.2% on average over the last month. Wabtec is up 8.2% during the same time and is heading into earnings with an average analyst price target of $249.42 (compared to the current share price of $245.23).
