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Wabtec (WAB) Q4 Earnings Match Estimates, Revenues Beat
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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corp. (WAB - Free Report) , fourth-quarter 2022 earnings of $1.30 per share met the Zacks Consensus Estimate. The bottom line improved 10.2% year over year, owing to higher sales and disciplined cost management.
Revenues of $2,306 million outperformed the Zacks Consensus Estimate of $2,232.8 million. The top line grew 11.2% year over year on the back of higher Freight segment revenues, partially offset by lower Transit segment revenues.
Total operating expenses in the reported quarter increased by $17 million to $405 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 120 basis points from the year-ago quarter’s figure to 17.5%.
Westinghouse Air Brake Technologies Corporation Price, Consensus and EPS Surprise
Freight net sales increased 17.1% to $1,669 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 17% from 18.7% in the year-ago quarter.
In the transit segment, net sales declined 1.7% to $637 million due to unfavorable foreign currency exchange. The segmental adjusted operating margin rose to 14.8% from 13.6%.
Balance-Sheet & Liquidity
As of Dec 31, 2022, Wabtec had $541 million worth of cash, cash equivalents and restricted cash. Long-term debt at the end of the quarter was $3,751 million compared with $3,824 million in September 2022.
WAB generated $410 million of cash from operations in the reported quarter.
During the fourth quarter, WAB repurchased $73 million worth of shares.
Wabtec’s board of directors announced a $750 million share buyback reauthorization and a 13% dividend hike, raising the quarterly dividend to 17 cents per share. The raised dividend will be paid on Mar 10, 2023, to shareholders of record on Feb 24, 2023.
2023 Guidance
Wabtec expects sales in the range of $8.7-$9 billion. The Zacks Consensus Estimate of $8.78 billion lies within the guidance.
Adjusted earnings per share are estimated in the band of $5.15-$5.55. The Zacks Consensus Estimate of $5.42 lies within the guidance.
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 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 $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
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Wabtec (WAB) Q4 Earnings Match Estimates, Revenues Beat
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corp. (WAB - Free Report) , fourth-quarter 2022 earnings of $1.30 per share met the Zacks Consensus Estimate. The bottom line improved 10.2% year over year, owing to higher sales and disciplined cost management.
Revenues of $2,306 million outperformed the Zacks Consensus Estimate of $2,232.8 million. The top line grew 11.2% year over year on the back of higher Freight segment revenues, partially offset by lower Transit segment revenues.
Total operating expenses in the reported quarter increased by $17 million to $405 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 120 basis points from the year-ago quarter’s figure to 17.5%.
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
Segmental Highlights
Freight net sales increased 17.1% to $1,669 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 17% from 18.7% in the year-ago quarter.
In the transit segment, net sales declined 1.7% to $637 million due to unfavorable foreign currency exchange. The segmental adjusted operating margin rose to 14.8% from 13.6%.
Balance-Sheet & Liquidity
As of Dec 31, 2022, Wabtec had $541 million worth of cash, cash equivalents and restricted cash. Long-term debt at the end of the quarter was $3,751 million compared with $3,824 million in September 2022.
WAB generated $410 million of cash from operations in the reported quarter.
During the fourth quarter, WAB repurchased $73 million worth of shares.
Wabtec’s board of directors announced a $750 million share buyback reauthorization and a 13% dividend hike, raising the quarterly dividend to 17 cents per share. The raised dividend will be paid on Mar 10, 2023, to shareholders of record on Feb 24, 2023.
2023 Guidance
Wabtec expects sales in the range of $8.7-$9 billion. The Zacks Consensus Estimate of $8.78 billion lies within the guidance.
Adjusted earnings per share are estimated in the band of $5.15-$5.55. The Zacks Consensus Estimate of $5.42 lies within the guidance.
Wabtec anticipates strong cash flow generation with operating cash flow conversion exceeding 90%.
Currently, Wabtec carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 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 $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.