Wall Street expects a year-over-year increase in earnings on higher revenues when Westinghouse Air Brake Technologies (WAB) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its nearterm stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 23, 2024, might help the stock move higher if these key ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Westinghouse Air Brake Technologies (WAB) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question. Westinghouse Air Brake Technologies is a member of the Transportation sector. This group includes 135 individual stocks and currently hold ...

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Shares of Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB) , scaled a 52-week high of $184.11 in the trading session on Sept. 26, 2024, before closing a tad lower at $182.27. Let's delve deeper to find out the factors working in favor of Wabtec stock. Why the Uptick in the WAB Stock? Wabtec's top line has been benefiting from higher sales across its Freight and Transit segments. While the Freight segment benefits from growth in services and components, the transit segme ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Westinghouse Air Brake Technologies Corporation's (WAB) , operating as Wabtec Corporation, top line is bolstered by its robust segmental performance. The shareholder-friendly approach bodes well for the company. Due to the tailwinds, WAB shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it's time to do so. Let's delve deeper. Factors Favoring WAB Stock Robust Price Performance: A look at the company's price trend reveals that its shares ha ...

Core Viewpoint - Wabtec Corporation (WAB) is experiencing positive momentum due to shareholder-friendly initiatives and strong performance in its Freight and Transit segments, with optimistic earnings guidance for 2024 [1][8]. Financial Performance - The Zacks Consensus Estimate for WAB's third-quarter and full-year 2024 earnings per share (EPS) has been revised upward, indicating growth of 9.4% and 26% from 2023 figures [2]. - Wabtec announced a 17.6% increase in its quarterly cash dividend, raising it from 17 cents to 20 cents per share, resulting in an annualized dividend of 80 cents and a yield of 0.47% [3]. - In 2022, Wabtec paid dividends of $111 million and repurchased shares worth $473 million; in 2023, dividends increased to $123 million with share repurchases of $409 million; in the first half of 2024, dividends were $71 million and share repurchases totaled $375 million [4]. Revenue Growth - Wabtec's revenue is benefiting from increased sales in its Freight and Transit segments, with the Freight segment seeing growth in services and components, while the Transit segment is boosted by strong aftermarket and original equipment manufacturing sales [6]. - The Zacks Consensus Estimate for WAB's revenues in the third and fourth quarters of 2024 is projected at $2.64 billion and $2.61 billion, reflecting improvements of 3.6% and 3.2% from 2023, respectively [7]. Earnings Guidance - Management has raised its 2024 EPS guidance to a range of $7.20-$7.50, up from the previous range of $7.00-$7.40, with the Zacks Consensus Estimate of $7.46 falling within this updated range [8]. - Wabtec's full-year revenue guidance remains unchanged at $10.25 billion to $10.55 billion, with the Zacks Consensus Estimate of $10.39 billion also within this range [9]. Stock Performance - Wabtec has a strong earnings surprise history, outperforming the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 11.83%. The stock has gained 37.2% year-to-date, outperforming its industry and the S&P 500 [10]. - The company's cash and equivalents increased to $595 million at the end of Q2 2024 from $371 million at the end of Q2 2023, while long-term debt decreased to $3.5 billion from $3.4 billion in the same period [12].

Westinghouse Air Brake Technologies (WAB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus E ...

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Financial Data and Key Metrics - Q2 sales were $2 64 billion, up 9 8% YoY, driven by strong performance in the Freight segment [102] - Adjusted EPS was $1 96, up 39% YoY, driven by higher sales and margin expansion [121] - Operating cash flow for Q2 was $235 million, with full-year cash conversion expected to exceed 90% [7] - Net-debt leverage ratio was 1 6x at the end of Q2, down from 2 4x YoY [2] - Adjusted operating margin improved to 19 3%, up 2 9 percentage points YoY [102] Business Line Performance - Freight segment sales grew 13 1% YoY, driven by equipment and components [112] - Equipment sales increased 36 4% YoY, driven by new locomotive deliveries and mining equipment sales [9] - Component sales rose 17 5% YoY, supported by industrial products and international sales [9] - Digital Intelligence sales grew 2 1% YoY, with international growth offsetting North American weakness [9] - Services sales increased 2 3% YoY, driven by higher overhauls and parts sales [9] - Transit segment sales grew 2 0% YoY, with aftermarket revenue up 10% [9] Market Performance - North America secured a multiyear order exceeding $600 million for Tier 4 locomotives, one of the largest in recent history [8] - International markets showed strength, with a 10-year service agreement in Brazil and a modernization order in Pakistan [95] - North American railcar deliveries are expected to be 38,000 in 2024, down from 45,000 in the previous year [100] Strategy and Industry Competition - The company is focusing on level-loading production to improve manufacturing efficiency and labor consistency [1] - Continued investment in decarbonization and digital technologies to enhance customer productivity and safety [117] - The Transit segment is benefiting from urbanization and decarbonization trends, driving demand for sustainable infrastructure [9] Management Commentary on Operating Environment and Outlook - Management expects mid-single-digit organic growth and double-digit EPS growth through the planning horizon [10] - The company is optimistic about the pipeline of opportunities across geographies, particularly in international markets [95] - Integration 2 0 and portfolio optimization initiatives are expected to drive significant cost savings by 2025 [121] Other Important Information - The company repurchased $200 million of shares and paid $35 million in dividends during the quarter [2] - The 12-month backlog was $7 3 billion, with a multi-year backlog of $22 billion [94] - The Transit segment's Green Friction braking solution is set to begin commercial operations in Greater Paris, reducing particle emissions by up to 90% [5] Q&A Session Summary Question: Details on the $600 million Tier 4 locomotive order in North America [11] - The order will be executed between 2025 and 2026 and was included in the Q2 backlog [107] Question: M&A pipeline and capital allocation strategy [15] - The M&A pipeline is robust, with a focus on driving higher ROIC and profitable growth [15] Question: North American rail customer inquiries and regulatory uncertainty [17] - Customers are operating within regulatory uncertainty, but no major shifts in behavior have been observed [137] Question: Digital Intelligence recovery in North America [22] - North American demand remains soft, but international growth is expected to continue, with recovery anticipated in 2024 [22] Question: Backlog trends and future visibility [33] - The 12-month backlog is strong, with a healthy pipeline supporting future growth [33] Question: Margin trends and guidance for the second half [43] - Margins are expected to moderate in the second half due to mix and absorption factors [45] Question: Efficiency levels post-COVID [50] - Efficiency levels have returned to pre-COVID levels, with strong operational performance in the first half [50] Question: Impact of the Chevron case on customer discussions [47] - No significant changes in customer behavior have been observed following the Chevron ruling [137] Question: Transit segment margin dynamics [76] - Transit margins are expected to improve, with growth driven by disciplined order intake and backlog profitability [54]