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Pittsburgh, Pennsylvania-based Westinghouse Air Brake Technologies Corporation (WAB) is a leading provider of technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit markets. Valued at $34.3 billion by market cap, the company offers diesel-electric, battery, and LNG-powered locomotives, marine products, railway electronics as well as components for braking, HVAC systems, and passenger information systems. The heavy transportation equipment company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Wednesday, Feb. 12.
Ahead of the event, analysts expect WAB to report a profit of $1.73 per share on a diluted basis, up 12.3% from $1.54 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect WAB to report EPS of $7.60, up 28.4% from $5.92 in fiscal 2023. Its EPS is expected to rise 13.2% year over year to $8.60 in fiscal 2025.
WAB stock has outperformed the S&P 500’s ($SPX) 24.6% gains over the past 52 weeks, with shares up 55.6% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 23.4% gains over the same time frame.
WAB’s outperformance is fueled by its acquisition of Evident’s Inspection Technologies division, expanding its digital intelligence business and enhancing its portfolio with advanced inspection solutions, coupled with the acquisition of Bloom Engineering, which bolstered WAB’s freight and industrial components group with advanced combustion technologies and industrial heating solutions, along with boosting margins, and advancing customer efficiency and sustainability.
On Oct. 23, WAB shares closed down more than 1% after reporting its Q3 results. Its revenue was $2.7 billion, exceeding Wall Street forecasts of $2.6 billion. The company’s adjusted EPS of $2, surpassed analyst estimates of $1.87. WAB expects full-year adjusted EPS to be between $7.45 and $7.65, and expects revenue to be between $10.3 billion and $10.6 billion.
Analysts’ consensus opinion on WAB stock is moderately bullish, with a “Moderate Buy” rating overall. Out of nine analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three give a “Hold.” WAB’s average analyst price target is $218.56, indicating a potential upside of 9.6% from the current levels.
