Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, is scheduled to report second-quarter 2024 results on Jul 24 before market open.
Wabtec has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 11.5%.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-eps-surprise | Westinghouse Air Brake Technologies Corporation Quote
The Zacks Consensus Estimate for WAB’s soon-to-be reported quarter’s earnings has been revised downward by 0.54% in the past 60 days to $1.85 per share.
We expect Wabtec's performance in the to-be-reported quarter to be boosted by an uptick in total revenues. The Zacks Consensus Estimate for revenues is pegged at $2.62 billion, which indicates growth of 9% from the year-ago levels. The top line is likely to have reflected strength across both Freight and Transit segments.
While the Freight segment benefits from growth in services and components, the transit segment gains from strong aftermarket and original equipment manufacturing sales.Our estimate for Freight revenues is pegged at $1.9 billion, which implies 9% growth from the prior-year figures. Meanwhile, estimates for Transit revenues are pegged at $711.8 million, which implies a 1.8% increase from the year-ago reported figure.
WAB is anticipated to maintain its strong performance, bolstered by strong underlying demand and a substantial backlog.
On the contrary, an increase in operating expenses may adversely impact the company’s bottom line in the to-be-reported quarter. Supply-chain disruptions can further escalate these expenses, hindering WAB’s performance in the June quarter.
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.
Wabtec has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of Q1
WAB reported first-quarter 2024 (excluding 36 cents from non-recurring items) earnings of $1.89 per share, which surpassed the Zacks Consensus Estimate of $1.49. The bottom line improved 47.66% year over year due to higher sales.
Revenues of $2.50 billion surpassed the Zacks Consensus Estimate of $2.35 billion. The top line grew 13.81% year over year due to higher sales of the Freight and Transit segments.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Allegiant ALGT has an Earnings ESP of +4.11% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 31.
ALGT surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 29.3%.
Kirby KEX has an Earnings ESP of +7.58% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. KEX is scheduled to report second-quarter 2024 earnings on Aug 1.
KEX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
