WILMERDING, Pa. (AP) -- Rail industry parts maker Wabtec Corp. said on Tuesday that its second-quarter earnings surged 78 percent, beating Wall Street expectations, on strong revenue growth at its freight segment.
Wabtec also raised its full-year earnings forecast above analysts' outlook.
The maker of parts for locomotives, subways and buses reported net income of $64.7 million, or $1.33 per share, for the three months ended June 30. That was up from $36.3 million, or 75 cents per share, in the same quarter a year ago, when earnings were reduced by 19 cents per share by one-time items.
Revenue rose 27 percent to $609.8 million from $478.9 million. The company's largest segment, the freight group, recorded a nearly 46 percent revenue gain, while its other segment, the transit group, posted revenue growth of nearly 2 percent.
The company, based in Wilmerding, Pa., increased its financial outlook for the full year, citing the second-quarter results. Wabtec now expects earnings per share in a range of $5.10 to $5.15, up from the company's previous guidance of about $4.80. Revenue is expected to grow about 20 percent from last year's figure of $1.97 billion, compared with previous expectations for 15 percent growth.
Analysts are expecting full-year earnings of $4.91, on average, and their consensus forecast for revenue of $2.32 billion implies revenue growth of nearly 18 percent.
Shares of Wabtec rose $2.32, or 3 percent, to $77.84 in afternoon trading, near the upper end of its 52-week range of $49.38 to $82.90.