Why Wabtec Shares Are Moving Higher Today

Comments
Loading...

Westinghouse Air Brake Technologies Corporation WAB (Wabtec) shares are trading higher after the company reported beat-and-raise third-quarter FY23 results.

WAB reported sales growth of 22.5% Y/Y to $2.55 billion, beating the consensus of $2.40 billion.

Sales growth was driven by significantly higher Freight segment sales (+23.4%) and increased Transit segment sales (+20%). 

Adjusted gross margin expanded 10 basis points to 31.5%, and the adjusted operating margin was 17.9%, up 150 basis points. 

At the end of the quarter, the total backlog stood at $21.48 billion, down 5% Y/Y. 

Adjusted EPS of $1.70 (+39.3% Y/Y) topped the consensus of $1.46.

At the end of the quarter, the company had cash and equivalents of $392 million and total debt of $4.05 billion. At September 30, 2023, the company's total available liquidity was $1.86 billion,

"Looking forward, we are confident that the breadth of our products and technologies combined with our ability to maintain resiliency during economic uncertainty will provide us with a solid foundation for growth and continued momentum as we close out this year and move into 2024. These factors, among others, give us confidence to raise our full-year 2023 guidance. Wabtec is well-positioned to continue driving profitable growth and maximizing shareholder value," said Wabtec's President and CEO Rafael Santana. 

FY23 Guidance: Wabtec raised the 2023 Adjusted EPS outlook to $5.80-$6.00 versus the $5.71 estimate (Prior View: $5.50-$5.80.).

The company sees sales of $9.5 billion-$9.7 billion vs $9.45 billion estimate (Prior View: $9.25 billion-$9.50 billion).

Price Action: WAB shares are trading higher by 3.96% at $103.90 in the premarket session on Wednesday.

Overview Rating:
Good
62.5%
Technicals Analysis
100
0100
Financials Analysis
40
0100
Overview
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!