Back to top

Image: Bigstock

What's in the Offing for Wabtec (WAB) This Earnings Season?

Read MoreHide Full Article

Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , is scheduled to report third-quarter 2021 results on Oct 27, before market open.

The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 1.7% in the past 60 days to $1.13.  

Let’s see how things are shaping up for Wabtec this earnings season.


Factors to Note

Wabtec’s third-quarter performance is likely to have been hurt by increasing capex. Also, the anticipated surge in operating expenses on the back of rising selling, general and administrative expenses are expected to have hurt the company’s financials.

Wabtec is gradually recovering from the coronavirus-induced slump, thanks to improving freight market conditions in the United States. Akin to the second quarter of 2021, the Freight segment is likely to have benefited from higher organic sales.

The company’s cost-control measures are expected to get reflected in the bottom line in the third quarter.

What Does the Zacks Model Say?

Our proven model does not predict an earnings beat for Wabtec this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Wabtec has an Earnings ESP of -0.60% as the Most Accurate Estimate is pegged at $1.12, lower than the Zacks Consensus Estimate of $1.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:  Wabtec carries a Zacks Rank #3.

Highlights of Q2 Earnings

Wabtec reported  second-quarter 2021 earnings (excluding 40 cents from non-recurring items) of $1.06 per share, surpassing the Zacks Consensus Estimate of 98 cents. The bottom line increased 21.8%. The top line surpassed the Zacks Consensus Estimate of $1887.7 million.

Stocks to Consider

Investors interested in the broader Transportation  sector may also consider United Parcel Service, Inc. (UPS - Free Report) , Old Dominion Freight Line (ODFL - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . These stocks possess the right combination of elements to beat on earnings this reporting cycle.

UPS has an Earnings ESP of +1.27% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Oct 26.

Old Dominion has an Earnings ESP of +0.49% and a Zacks Rank #2. The company will report third-quarter results on Oct 27.

C.H. Robinson has an Earnings ESP of +1.06% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Oct 26.