We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wabtec (WAB) Tops on Q1 Earnings & Revenues, Retains View
Read MoreHide Full Article
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported first-quarter 2023 earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line improved 13.3% year over year, owing to higher sales, partially offset by higher interest expenses.
Revenues of $2,194 million outperformed the Zacks Consensus Estimate of $2,100.2 million. The top line grew 13.9% year over year on the back of higher Freight segment sales and increased Transit segment sales.
Westinghouse Air Brake Technologies Corporation Price, Consensus and EPS Surprise
Total operating expenses in the reported quarter increased $33 million to $389 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 70 basis points from the year-ago quarter to 17.7%.
Segmental Highlights
Freight net sales increased 18.5% to $1,566 million. Results were boosted by strength across all product lines, with solid growth in Equipment, Components and Digital Intelligence. The segmental operating margin (on an adjusted basis) decreased to 19% from 19.6% in the year-ago quarter.
In the transit segment, net sales grew 3.8% to $628 million due to strong aftermarket sales, partially offset by unfavorable foreign currency exchange. The segmental adjusted operating margin rose to 13.1% from 12.3%.
Balance Sheet & Liquidity
As of Mar 31, 2023, Wabtec had $417 million worth of cash, cash equivalents and restricted cash compared with $541 million at the end of December 2022. Long-term debt at the end of the quarter was $3,189 million compared with $3,751 million in December 2022.
WAB used $25 million of cash from operations in the reported quarter.
In the first quarter, WAB repurchased $178 million worth of shares.
2023 Guidance
Wabtec continues to expect sales of $8.7-$9 billion. The Zacks Consensus Estimate of $8.87 billion lies within the company's guidance.
Adjusted earnings per share are estimated to be $5.15-$5.55. The Zacks Consensus Estimate of $5.39 lies within the company's guidance.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions ("ICS"), 5% in Intermodal ("JBI") and 17% in Final Mile Services ("FMS"), and a 17% decline in revenue per load in Truckload ("JBT"). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services' revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported a first-quarter 2023loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% due to continued recovery in air-travel demand.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wabtec (WAB) Tops on Q1 Earnings & Revenues, Retains View
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported first-quarter 2023 earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line improved 13.3% year over year, owing to higher sales, partially offset by higher interest expenses.
Revenues of $2,194 million outperformed the Zacks Consensus Estimate of $2,100.2 million. The top line grew 13.9% year over year on the back of higher Freight segment sales and increased Transit segment sales.
Westinghouse Air Brake Technologies Corporation Price, Consensus and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-consensus-eps-surprise-chart | Westinghouse Air Brake Technologies Corporation Quote
Total operating expenses in the reported quarter increased $33 million to $389 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 70 basis points from the year-ago quarter to 17.7%.
Segmental Highlights
Freight net sales increased 18.5% to $1,566 million. Results were boosted by strength across all product lines, with solid growth in Equipment, Components and Digital Intelligence. The segmental operating margin (on an adjusted basis) decreased to 19% from 19.6% in the year-ago quarter.
In the transit segment, net sales grew 3.8% to $628 million due to strong aftermarket sales, partially offset by unfavorable foreign currency exchange. The segmental adjusted operating margin rose to 13.1% from 12.3%.
Balance Sheet & Liquidity
As of Mar 31, 2023, Wabtec had $417 million worth of cash, cash equivalents and restricted cash compared with $541 million at the end of December 2022. Long-term debt at the end of the quarter was $3,189 million compared with $3,751 million in December 2022.
WAB used $25 million of cash from operations in the reported quarter.
In the first quarter, WAB repurchased $178 million worth of shares.
2023 Guidance
Wabtec continues to expect sales of $8.7-$9 billion. The Zacks Consensus Estimate of $8.87 billion lies within the company's guidance.
Adjusted earnings per share are estimated to be $5.15-$5.55. The Zacks Consensus Estimate of $5.39 lies within the company's guidance.
Wabtec anticipates strong cash flow generation, with operating cash flow conversion exceeding 90%.
Currently, Wabtec carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions ("ICS"), 5% in Intermodal ("JBI") and 17% in Final Mile Services ("FMS"), and a 17% decline in revenue per load in Truckload ("JBT"). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services' revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported a first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% due to continued recovery in air-travel demand.