Rail equipment company Westinghouse Air Brake Technologies (NYSE: WAB) will be announcing earnings results this Wednesday before the bell. Here’s what you need to know.
Wabtec beat analysts’ revenue expectations last quarter, reporting revenues of $2.97 billion, up 14.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a significant 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, the market is expecting Wabtec’s revenue to grow 13.4% year on year, improving from the 4.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Wabtec’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Greenbrier’s revenues decreased 22.9% year on year, missing analysts’ expectations by 11.5%, and Lindsay reported a revenue decline of 15.7%, falling short of estimates by 4.2%. Greenbrier traded up 2.9% following the results while Lindsay was down 12.1%.
Read our full analysis of Greenbrier’s results here and Lindsay’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 11.6% on average over the last month. Wabtec is up 10.7% during the same time and is heading into earnings with an average analyst price target of $292.92 (compared to the current share price of $267.45).
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