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Earnings Review and Free Research Report: Westinghouse Air Brake Technologies’ Revenue surged 42%; Latest Acquisition Being a Hit

Research Desk Line-up: FreightCar America Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Westinghouse Air Brake Technologies Corp. (NYSE: WAB) ("Wabtec"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WAB, following the Company's posting of its financial results on October 24, 2017, for the third quarter fiscal 2017 (Q3 FY17). The results of the leading provider of systems, equipment for transit and freight rail, exceeded Wall Street's expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Railroads industry. Pro-TD has currently selected FreightCar America, Inc. (NASDAQ: RAIL) for due-diligence and potential coverage as the Company reported on November 01, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on FreightCar America when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WAB; also brushing on RAIL. With the links below you can directly download the report of your stock of interest free of charge at:

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http://protraderdaily.com/optin/?symbol=RAIL

Earnings Reviewed

Wabtec's total revenue increased to $957.93 million for Q3 FY17 from $675.57 million for Q3 FY16, thereby reporting a 41.79% increase on a y-o-y basis. The significant increase in revenue was mainly due to acquisition of Faiveley Transport, sales from acquisitions, particularly in the Transit Group and due to change in foreign exchange rates. Moreover, the current quarter's revenues beat analysts' estimates of $945.2 million.

For Q3 FY17, Wabtec's gross profit accounted to $253.20 million compared to $212.48 million in Q3 FY16, therefore reporting a positive change of 19.16%.

The Company's total operating expenses amounted to $151.19 million in Q3 FY17 compared to $92.39 million in Q3 FY16, resulting in a negative change of 63.64%, due to high selling and administrative costs. Income from operations declined 14.98% from $120.10 million in Q3 FY16 to $102.01 million in the current quarter.

The current quarter's interest expense accounted for $17.90 million compared to $6.06 million on y-o-y basis. The reasoning behind the same can be pointed to the Company's acquisition of Faiveley Transport, thereby portraying a higher debt balance.

Wabtec ended with a net income of $68.44 million in Q3FY17, thereby reporting a decline of 16.97% compared to net income of $82.43 million. The Company reported net income/share as $0.70 in Q3 FY17 including expenses of $0.18 per diluted share for the contract adjustments and restructuring and integration actions compared to $0.92 in Q3 FY16. The Company's adjusted EPS accounted to $0.88 per share beating analysts' estimate of $0.84 per share.

Wabtec's Segment Details

Wabtec has two segments: Transit and Freight.

The transit segment revenue surged 97% y-o-y from $313.58 million in Q3 FY16 to $617.75 million in the current quarter. Such rocketing revenues can be fairly accounted to the Company's acquisition of Faiveley Transport, which added $290 million to the revenues. The segment's Income from operations totaled $47.53 million and included expenses for contract adjustments and restructuring and integration of $18 million. Excluding these expenses, adjusted income from operations increased 29%, with an operating margin of 10.7%.

On the other hand, the Freight segment reported revenues of $340.19 million for Q3FY17 compared to $362 million on a y-o-y basis, resulting into a negative change of 6.02%. The decline was a result of low sales accounted from original equipment rail products. The segment's adjusted income from operations declined by 12% and operating margin accounted to 20.2 %.

Balance Sheet

Wabtec's total current assets for Q3 FY17 accounted for $2.28 billion compared to $2.87 billion for Q4 FY16.

Wabtec reported $40 million as cash from operations for Q3 FY17. The consolidated cash flows for nine months ending September 30, 2017, reported effect of change in currency exchange rates as $22.96 million compared to $5.52 million for the same period in 2016. The cash at the end of September 2017 amounted to $228.08 million therefore resulting into a negative change of 8.90%.

The Company declared regular quarterly dividend of $0.12 per share, which would be payable on November 27, 2017.

Outlook

Wabtec expects earnings from Q4 FY17 to be the strongest compared to the previous quarters of fiscal year 2017. The Company's full year revenue is expected to be somewhere around $3.8 billion and adjusted earnings to be in the range of $3.45 to $3.50. With the successful acquisition of Faiveley Transport, the Company aims to win new orders across major geographies and product categories.

Stock Performance

On Monday, November 06, 2017, the stock closed the trading session at $77.05, marginally rising 0.03% from its previous closing price of $77.03. A total volume of 541.58 thousand shares have exchanged hands. Wabtec's stock price advanced 1.92% in the last one month, 5.23% in the past three months, and 0.98% in the previous twelve months. The stock is trading at a PE ratio of 29.24 and has a dividend yield of 0.62%. The stock currently has a market cap of $7.34 billion.

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SOURCE: Pro-Trader Daily