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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported mixed third-quarter 2022 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings of $1.22 per share beat the Zacks Consensus Estimate of $1.20. The bottom line improved 7% year over year, owing to higher sales, disciplined cost management and lower restructuring and transaction costs.
Revenues of $2,081 million lagged the Zacks Consensus Estimate of $2,117.1 million. However, the top line grew 9.1% year over year on the back of higher Freight segment revenues, partially offset by lower Transit segment revenues.
Westinghouse Air Brake Technologies Corporation Price, Consensus and EPS Surprise
Total operating expenses in the reported quarter increased by $1 million to $387 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 160 basis points from the year-ago quarter’s figure to 18.6%.
Segmental Highlights
Freight net sales increased 18.2% to $1,531 million. Results were boosted by strength across all product lines, with solid growth in Equipment, Digital Electronics and Services. Segmental operating margin (on an adjusted basis) decreased to 19.9% from 20.6% in the year-ago quarter.
In the transit segment, net sales declined 10.1% to $550 million due to unfavorable foreign currency exchange and the carryover effects from the previously announced cyber incident in the second quarter. Segmental adjusted operating margin fell to 11% from 12.5%.
Balance-Sheet Data
As of Sep 30, 2022, Wabtec had $514 million worth of cash and cash equivalents compared with $501 million at the end of June 2022. Long-term debt at the end of the quarter was $3,824 million compared with $3,987 million in June 2022.
WAB generated $204 million of cash from operations in the reported quarter.
2022 Guidance
Wabtec now expects sales in the range of $8.15-$8.35 billion (prior view: $8.3-8.6 billion). The Zacks Consensus Estimate of $8.35 billion meets the higher end of the updated guidance.
Adjusted earnings per share are now estimated in the band of $4.75-$4.95 compared with the prior guidance of $4.70-$5.00. The Zacks Consensus Estimate of $4.88 lies within the updated guidance.
Wabtec continues to expect strong cash flow generation with operating cash flow conversion exceeding 90%.
Delta AirLines’(DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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Wabtec (WAB) Q3 Earnings Beat Estimates, 2022 View Tweaked
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported mixed third-quarter 2022 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings of $1.22 per share beat the Zacks Consensus Estimate of $1.20. The bottom line improved 7% year over year, owing to higher sales, disciplined cost management and lower restructuring and transaction costs.
Revenues of $2,081 million lagged the Zacks Consensus Estimate of $2,117.1 million. However, the top line grew 9.1% year over year on the back of higher Freight segment revenues, partially offset by lower Transit segment revenues.
Westinghouse Air Brake Technologies Corporation Price, Consensus and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-consensus-eps-surprise-chart | Westinghouse Air Brake Technologies Corporation Quote
Total operating expenses in the reported quarter increased by $1 million to $387 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 160 basis points from the year-ago quarter’s figure to 18.6%.
Segmental Highlights
Freight net sales increased 18.2% to $1,531 million. Results were boosted by strength across all product lines, with solid growth in Equipment, Digital Electronics and Services. Segmental operating margin (on an adjusted basis) decreased to 19.9% from 20.6% in the year-ago quarter.
In the transit segment, net sales declined 10.1% to $550 million due to unfavorable foreign currency exchange and the carryover effects from the previously announced cyber incident in the second quarter. Segmental adjusted operating margin fell to 11% from 12.5%.
Balance-Sheet Data
As of Sep 30, 2022, Wabtec had $514 million worth of cash and cash equivalents compared with $501 million at the end of June 2022. Long-term debt at the end of the quarter was $3,824 million compared with $3,987 million in June 2022.
WAB generated $204 million of cash from operations in the reported quarter.
2022 Guidance
Wabtec now expects sales in the range of $8.15-$8.35 billion (prior view: $8.3-8.6 billion). The Zacks Consensus Estimate of $8.35 billion meets the higher end of the updated guidance.
Adjusted earnings per share are now estimated in the band of $4.75-$4.95 compared with the prior guidance of $4.70-$5.00. The Zacks Consensus Estimate of $4.88 lies within the updated guidance.
Wabtec continues to expect strong cash flow generation with operating cash flow conversion exceeding 90%.
Currently, Wabtec carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’(DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.