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Based in Pittsburgh, Pennsylvania, Westinghouse Air Brake Technologies Corporation (WAB) provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries. With a market cap of $32.1 billion, the company is expected to announce its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 23.
Ahead of this event, analysts expect the freight company to report a profit of $1.87 per share, up 10% from $1.70 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q2, the company reported an EPS of $1.96, which topped the consensus estimates by nearly 6%.
For fiscal 2024, analysts expect WAB to report an EPS of $7.46, up 26% from $5.92 in fiscal 2023. Moreover, EPS is expected to grow 11.5% year-over-year to $8.32 in fiscal 2025.
Shares of Wabtec have rallied 43.4% on a YTD basis, significantly outperforming both the S&P 500 Index's ($SPX) 20.6% surge and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% return over the same period.
WAB has benefitted from its consistent shareholder-friendly efforts and solid growth across its Freight and Transit segments over the years, fueled by innovation and efficient business strategies. Yet, despite delivering better-than-expected performance, shares of WAB fell 6.4% on Jul. 24, after its Q2 earnings release. The fall in share price can be attributed to minor negatives, including a weaker-than-expected backlog and the absence of a rise in full-year revenue guidance despite a revenue beat in the quarter. The company did raise its full-year EPS guidance to $7.20-$7.50, but the midpoint remained below the consensus estimates.
Analysts' consensus view on Westinghouse Air Brake Technologies’ stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among nine analysts covering the stock, five recommend a "Strong Buy," one suggests a "Moderate Buy," and three recommend a “Hold.” This configuration is slightly more bullish than three months ago, with four analysts suggesting a "Strong Buy."
The average analyst price target for WAB is $185, indicating a just 1.7% potential upside 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.
