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Westinghouse Air Brake Technologies Corporation (WAB), with a market cap of $27.6 billion, is a leading provider of advanced locomotives, components, and technology-based systems for the global freight rail and passenger transit industries. The Pittsburgh, Pennsylvania-based company is slated to announce its fiscal Q2 earnings results before the market opens on Wednesday, July 24.
Ahead of the event, analysts are expecting WAB to report a profit of $1.81 per share, up 28.4% from $1.41 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Wabtec surpassed the consensus EPS estimate by 26.9% in the most recent quarter, driven by strong growth in its freight segment.
For fiscal 2024, analysts expect WAB to report EPS of $7.34, up nearly 24% from $5.92 in fiscal 2023.
WAB's surge of 44.1% over the past 52 weeks exceeds the 25.2% rise of the S&P 500 Index ($SPX) and the 13.5% gain of the S&P 500 Industrial Sector SPDR (XLI) over the same period.
Shares of Wabtec declined after Q4 earnings in February when adjusted earnings per share missed expectations despite higher sales. However, the stock surged 10% on Apr. 24 due to the company exceeding Q1 earnings expectations, driven by a significant 17.2% sales increase in its freight segment. Additionally, the company raised its full-year earnings guidance, further boosting investor confidence.
Analysts' consensus rating on Wabtec stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among eight analysts covering the stock, four recommend a "Strong Buy,” one has a "Moderate Buy" rating, and three give a "Hold" rating. This configuration is slightly less bullish than three months ago, with five analysts suggesting a "Strong Buy."
The average analyst price target for WAB is $173.50, indicating a potential upside of 10.9% from the current levels.
On the date of publication, Sohini Mondal 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.
