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Wabtec (WAB) to Report Q1 Earnings: What's in the Cards?
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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , is scheduled to report first-quarter 2023 results on Apr 26, before market open.
The company has surpassed the Zacks Consensus Estimate in two of the preceding four quarters (missing the mark once and reporting in-line earnings in the remaining quarter), the average beat being 0.40%.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
The consensus estimate for first-quarter earnings has remained stable at $1.19 per share over the past 60 days.
Given this backdrop, let’s examine the factors that are likely to have influenced Wabtec’s performance in the quarter to be reported.
The top line is likely to have been aided by higher Freight revenues. Our estimate for Freight revenues is pegged at $1.49 billion, indicating a 12.9% increase from the year-ago reported figure. Solid growth in Equipment and Services is likely to have driven the segment’s revenues.
Our model estimates Transit revenues to be $585.6 million, indicating a 3.2% decline from the year-ago reported figure. The downside might have been owing to supply-chain disruptions.
Also, escalating operating expenses are likely to have weighed on WAB’s bottom line. High fuel costs are likely to have resulted in the upsurge in operating costs.
What Our Model Says
Our proven model does not conclusively 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 odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Wabtec has an Earnings ESP of +0.00% and a Zacks Rank #2.
Highlights of Q4
Wabtec’s 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 beat the Zacks Consensus Estimate of $2,232.8 million. The top line grew 11.2% year over year on the back of higher Freight revenues, partially offset by lower Transit revenues.
Total operating expenses in the December 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%.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. It will release first-quarter 2023 results on Apr 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has increased 18.3% from first-quarter 2022 actuals.
The Zacks Consensus Estimate for CPA’s first-quarter 2023 earnings has improved more than 100% year over year. Upbeat air-travel demand is expected to have buoyed Copa Holdings’ top line in the to-be-reported quarter.
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Wabtec (WAB) to Report Q1 Earnings: What's in the Cards?
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , is scheduled to report first-quarter 2023 results on Apr 26, before market open.
The company has surpassed the Zacks Consensus Estimate in two of the preceding four quarters (missing the mark once and reporting in-line earnings in the remaining quarter), the average beat being 0.40%.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-eps-surprise | Westinghouse Air Brake Technologies Corporation Quote
The consensus estimate for first-quarter earnings has remained stable at $1.19 per share over the past 60 days.
Given this backdrop, let’s examine the factors that are likely to have influenced Wabtec’s performance in the quarter to be reported.
The top line is likely to have been aided by higher Freight revenues. Our estimate for Freight revenues is pegged at $1.49 billion, indicating a 12.9% increase from the year-ago reported figure. Solid growth in Equipment and Services is likely to have driven the segment’s revenues.
Our model estimates Transit revenues to be $585.6 million, indicating a 3.2% decline from the year-ago reported figure. The downside might have been owing to supply-chain disruptions.
Also, escalating operating expenses are likely to have weighed on WAB’s bottom line. High fuel costs are likely to have resulted in the upsurge in operating costs.
What Our Model Says
Our proven model does not conclusively 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 odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Wabtec has an Earnings ESP of +0.00% and a Zacks Rank #2.
Highlights of Q4
Wabtec’s 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 beat the Zacks Consensus Estimate of $2,232.8 million. The top line grew 11.2% year over year on the back of higher Freight revenues, partially offset by lower Transit revenues.
Total operating expenses in the December 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%.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. It will release first-quarter 2023 results on Apr 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has increased 18.3% from first-quarter 2022 actuals.
Copa Holdings (CPA - Free Report) has an Earnings ESP of +19.57% and sports a Zacks Rank #1. It will release first-quarter 2023 results on May 10. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPA’s first-quarter 2023 earnings has improved more than 100% year over year. Upbeat air-travel demand is expected to have buoyed Copa Holdings’ top line in the to-be-reported quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.