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

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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corp. (WAB - Free Report) , is scheduled to report fourth-quarter 2021 results on Feb 16, before market open.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been constant at $1.17 per share in the past 60 days.  

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

Factors to Note

Wabtec is gradually recovering from the coronavirus-induced slump, thanks to improving freight market conditions in the United States. Akin to third-quarter 2021, the Freight segment is likely to have benefited from higher demand for Services and upbeat components sales.

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

WAB’s fourth-quarter performance is likely to have been hurt by increasing capex. Also, the anticipated surge in operating expenses  — thanks to rising selling, general and administrative expenses — is expected to have hurt the company’s financials.

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 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.17. 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 Q3 Earnings

Wabtec's earnings (excluding 45 cents from non-recurring items) of $1.14 per share surpassed the Zacks Consensus Estimate of $1.13. The bottom line improved 20% to $1,906.9 million, driven by a 2.2% year-over-year increase in revenues. The top line fell short of the Zacks Consensus Estimate of $2,087.1 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. , Expeditors International of Washington, Inc. (EXPD - Free Report) and International Consolidated Airlines Group, S.A. (ICAGY - Free Report) , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. EGLE will report fourth-quarter results on Mar 3.

Eagle Bulk’s shares have gained 90% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average.

Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player.

Expeditors will release fourth-quarter 2021 results on Feb 22. EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.

International Consolidated Airlines has an Earnings ESP of +27.78% and is currently a #3 Ranked player. ICAGY will release fourth-quarter 2021 results on Feb 25.

International Consolidated Airlines’ 2022 earnings and revenues are expected to increase 108.7% and 153.1%, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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