Wabtec (WAB) to Report Q3 Earnings: What's in the Cards?
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB), is scheduled to report third-quarter 2023 results on Oct 25, before market open.
Wabtec has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.42%.The Zacks Consensus Estimate for WAB’s third-quarter 2023 earnings has been revised upward by 7.4% in the past 90 days.
Let’s see how things have shaped up for WAB this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for WAB’s third-quarter 2023 revenues is pegged at $2.40 billion, indicating 15.38% growth year over year. The top line is likely to have benefited from strength across both the Freight and Transit segments.
The Zacks Consensus Estimate for third-quarter Freight revenues is pegged at $1,732 million, indicating 13.1% growth from the year-ago reported figure. Strength across all product lines, with solid growth in Equipment, Components and Digital Intelligence, might have boosted segmental revenues.
The Zacks Consensus Estimate for third-quarter Transit revenues is pegged at $660 million, indicating 20% growth from the year-ago reported figure. The uptick is likely to have been aided by strong aftermarket sales.
On the flip side, supply-chain disruptions are a bane for a company. Factors like higher commodity costs and shortages of component, chip and labor, are expected to have weighed on WAB’s third-quarter performance. High operating expenses (backed by a rise in selling, general and administrative expenses) continue to bother the company’s bottom line.
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. But that’s 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.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-eps-surprise | Westinghouse Air Brake Technologies Corporation Quote
Highlights of Q2
Wabtec's second-quarter 2023 earnings (excluding 35 cents from non-recurring items) of $1.41 per share beat the Zacks Consensus Estimate of $1.35. The bottom line improved 14.6% year over year, owing to higher sales.
Revenues of $2,407 million also surpassed the Zacks Consensus Estimate of $2,207.6 million. The top line grew 17.5% year over year on the back of higher sales of the Freight and Transit segments.
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 their third-quarter 2023 earnings:
Golar LNG Limited GLNG has an Earnings ESP of +18.00% and a Zacks Rank #1. GLNG will release results on Nov 21. You can see the complete list of today’s Zacks #1 Rank stocks here.
GLNG has an expected earnings growth rate of 13.64% for third-quarter 2023. GLNG delivered a trailing four-quarter earnings surprise of 24.04%, on average.
The Zacks Consensus Estimate for GLNG’s third-quarter 2023 revenues is pegged at $69.01 million, indicating growth of 1.62% year over year.
Ryder System, Inc. R has an Earnings ESP of +5.48% and a Zacks Rank #1. R will release results on Oct 25.
The Zacks Consensus Estimate for R’s third-quarter 2023 earnings has been revised upward by 13.8% in the past 90 days. R delivered a trailing four-quarter earnings surprise of 11.20%, on average.
Shares of R have gained 21.6% year to date.
Air Transport Services Group, Inc. ATSG has an Earnings ESP of +3.83% and a Zacks Rank #2. ATSG will release results on Nov 6.
The Zacks Consensus Estimate for ATSG’s third-quarter 2023 earnings has been revised upward by 11.4% in the past 90 days. ATSG delivered a trailing four-quarter earnings surprise of 9.21%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
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