WAB Earnings Prediction
The chart below shows how WAB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WAB sees a -1.87% change in stock price 10 days leading up to the earnings, and a +1.44% change 10 days following the report. On the earnings day itself, the stock moves by -0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
WAB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.58B
2.26%
-3.00%
Gross Margin
28.53%
1.93%
-5.97%
Operating Margin
13.94%
-7.07%
-16.58%
Net Margin
8.25%
-3.96%
-23.18%
EPS
1.23
2.50%
-24.54%
No Data Available
WAB Earnings Analysis
Westinghouse Air Brake Technologies Corp Corporation (WAB.N) Earnings Conference Call
Positive
Revenue and EPS Growth: Top line growth of 7% for the year, with adjusted EPS growth of 28%.
Operating Margin Improvement: Operating margin expanded by 190 basis points, demonstrating improved profitability.
Strong Cash Flow Performance: Cash flow from operations for Q4 was $723 million, resulting in a strong cash conversion of 212%.
Backlog Growth Momentum: The twelve-month backlog reached $7.7 billion, indicating continued momentum and visibility across the business.
Dividend Increase and Share Buyback: The Board of Directors approved a 25% increase in the quarterly dividend and authorized an additional $1 billion for share repurchases.
Negative
Services Sales Decline: Services sales decreased by 15.9% in Q4, reversing the growth seen in the previous quarter, indicating a significant decline in this segment.
Flat Operating Margin: Adjusted operating margin for Q4 was largely flat at 16.9%, showing no improvement year-over-year despite expectations for growth.
Restructuring Charges Impact Profitability: Net pre-tax charges of $32 million for restructuring in Q4 highlight ongoing costs associated with integration and optimization initiatives, impacting overall profitability.
Railcar Demand Decline: Demand for new railcars in North America fell to approximately 42,000 cars for 2024, with an industry outlook predicting a nearly 17% decline in 2025, signaling a downturn in market conditions.
Digital Intelligence Sales Decline: Digital intelligence sales decreased by 1.4% from last year, primarily due to softness in the North American market, indicating challenges in this growth area.
WAB FAQs
How does WAB typically perform around its earnings report dates?
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WAB Earning Call Sentiment
Earnings call transcript: Westinghouse Air Brake Q4 2024 misses EPS
WAB.N
-0.99%Positive
The earnings call highlights strong financial performance, including a 9.1% increase in adjusted EPS and a 25% dividend increase. The company is executing strategic initiatives like Integration 2.0 for cost savings and has a robust backlog. Despite mixed economic factors, the positive outlook for margin expansion and strategic share repurchases support a positive sentiment. The Q&A indicates management's confidence in pricing power and margin growth, though some concerns about North American demand persist. Overall, the positive elements outweigh the negatives, suggesting a likely positive stock movement.
