Wabtec (WAB) to Report Q4 Earnings: What's in the Cards?
Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, is scheduled to report its fourth-quarter 2023 results on Feb 14, before market open.
Wabtec has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and meeting in one, the average beat being 7.11%.
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 upward by 1.29% in the past 60 days at $1.57 per share.
We expect Wabtec's performance in the to-be-reported quarter to have been boosted by an uptick in total revenues.
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $2.49 billion, indicating year-over-year growth of 8.08%. The top line is likely to reflect strength across both Freight and Transit segments.
Our estimate for the fourth-quarter 2023 Freight revenues is pegged at $1.8 billion, indicating 8% year-over-year growth. Growth in segmental revenues is likely to have benefited from the upsurge in Equipment, Components and Digital Intelligence.
Our estimate for fourth-quarter 2023 Transit revenues is pegged at $694 million, indicating a 9% increase from the year-ago reported figure. The rally is likely to have been bolstered by strong aftermarket sales.
Conversely, disruptions in the supply chain are likely to have affected WAB, lowering profit margins. Other factors, such as high commodity costs and the shortage of components, labor and chips, are expected to have hindered WAB’s performance in the quarter to be reported. The company’s bottom line is likely to have been affected by high operating expenses.
What Our Model Says
Our proven model conclusively predicts 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. That is precisely 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 +0.85% (the Most Accurate Estimate is pegged at $1.58 and the Zacks Consensus Estimate is pinned at $1.57) and a Zacks Rank #2 at present.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these, too, have the right combination of elements to beat on their fourth-quarter 2023 earnings.
International Seaways INSW currently has an Earnings ESP of +3.51% and a Zacks Rank #3. The company is set to release its fourth-quarter 2023 earnings report on Feb 29.
The Zacks Consensus Estimate for INSW’s earnings in fourth-quarter 2023 has been revised upward by 7.77% in the past 60 days at $2.08 per share.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Star Bulk Carriers SBLK presently has an Earnings ESP of +6.40% and a Zacks Rank #3. The company is set to release its fourth-quarter 2023 earnings report on Feb 15.
SBLK’s earnings surprise history has been impressive, as it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average beat being 33.08%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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