Wabtec (WAB) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Wall Street analysts expect Westinghouse Air Brake Technologies (WAB) to report quarterly earnings of $2.18 per share, reflecting an 11.2% year-over-year increase, with revenues projected at $2.77 billion, a 4.8% increase from the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.8%, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue and Sales Estimates - Analysts predict 'Sales to external customers - Transit Segment' will reach $762.91 million, a 5.4% increase from the year-ago quarter [5]. - The estimated 'Sales to external customers - Freight Segment' is $2.01 billion, reflecting a 4.6% increase from the previous year [5]. Backlog Estimates - The total backlog is expected to reach $22.34 billion, compared to $22.08 billion from the same quarter last year [5]. - The average prediction for 'Backlog - Transit Group' is $4.42 billion, up from $4.15 billion in the same quarter last year [6]. - The consensus estimate for 'Backlog - Freight Group' stands at $17.92 billion, slightly down from $17.93 billion year-over-year [6]. Income from Operations - 'Adjusted Income from operations - Transit Segment' is projected at $104.42 million, compared to $91.00 million in the same quarter last year [7]. - 'Adjusted Income from operations - Freight Segment' is expected to be $487.43 million, up from $462.00 million year-over-year [7]. - The 'Income from operations - Freight Segment' is estimated at $434.84 million, compared to $391.00 million last year [8]. - The 'Income from operations - Transit Segment' is projected to reach $91.71 million, up from $82.00 million in the previous year [8]. Stock Performance - Over the past month, Wabtec shares have returned +6%, outperforming the Zacks S&P 500 composite's +5.4% change [8].