Latest news with #WAB
Yahoo
10-07-2025
- Business
- Yahoo
Here's Why Investors Should Give American Airlines Stock a Miss Now
American Airlines AAL is facing significant challenges adversely impacting its top line. Economic uncertainty, weak liquidity and escalated operating expenses are major headwinds, putting a strain on the company's prospects and making it an unattractive choice for investors' portfolios. Let's delve deeper. Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-year earnings has moved 9.4% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 6.3% downward in the same time frame. The unfavorable estimate revisions indicate brokers' lack of confidence in the stock. Image Source: Zacks Investment Research Dim Price Performance: The company's price trend reveals that its shares have dropped 33% year to date compared with the Transportation - Airline industry's 2.8% fall. Image Source: Zacks Investment Research Weak Zacks Rank: American Airlines currently carries a Zacks Rank #5 (Strong Sell). Headwinds: American Airlines is facing mounting pressure as a combination of weakening demand, rising costs and fragile liquidity weighs heavily on its financial performance. The 0.2% year-over-year decline in revenues, while modest on the surface, reflects broader headwinds facing the airline. Economic uncertainty has dampened domestic leisure travel, a key revenue driver, compounding the negative impact of the tragic American Eagle Flight 5342 accident. Such incidents can lead not only to immediate reputational damage but also to longer-term declines in consumer confidence, particularly if safety concerns remain in the public eye. Adding to the strain, total operating expenses rose to $12.82 billion from $12.56 billion in the same quarter last year, indicating limited progress in controlling costs despite stagnant top-line growth. More concerning is the company's liquidity position. American Airlines ended the quarter with a current ratio (a measure of liquidity) of just 0.52. A current ratio below 1 signals that the airline may not have enough short-term assets to meet its immediate obligations — an alarming sign for a capital-intensive industry like aviation. American Airlines' financial stability is under serious pressure. Without strategic adjustments to strengthen liquidity, rebuild traveler confidence and rein in costs, the airline may face deeper challenges in the coming quarters. Investors interested in the Transportation sector may consider Wabtec WAB and Kirby KEX. WAB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. WAB has an expected earnings growth rate of 15.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.9%. Shares of WAB have risen 13% year to date. KEX currently carries a Zacks Rank of #2. KEX has an expected earnings growth rate of 18.7% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5%. Shares of KEX have rallied 10.5% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Kirby Corporation (KEX) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
Here's What to Expect From Westinghouse Air Brake's Next Earnings Report
Valued at a market cap of $36.6 billion, Westinghouse Air Brake Technologies Corporation (WAB) delivers advanced technology solutions for the freight rail and passenger transit sectors. Headquartered in Pittsburgh, Pennsylvania, its offerings include diesel-electric and LNG-powered locomotives, engines, electric motors, propulsion systems, and equipment for marine and mining applications. The company is set to release its fiscal Q2 earnings before the market opens on Thursday, July 24. Ahead of this event, analysts expect WAB to report a profit of $2.17 per share, up 10.7% from $1.96 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in three of the last four quarters, while missing in another occasion. UnitedHealth Stock Is One of the Worst-Performing S&P 500 Stocks in 2025. Should You Buy the Dip? AI Isn't Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race 'It's a Miracle': Nvidia CEO Says Their New Technology Takes 'AI Supercomputing to a Whole New Level' Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts expect WAB to report a profit of $8.72 per share, up 15.3% from $7.56 in fiscal 2024. Shares of WAB have surged 35.7% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 13..4% rise, and the Industrial Select Sector SPDR Fund's (XLI) 22.8% surge over the same time frame. WAB shares surged 5.9% after the company reported its Q1 results on April 23. Revenue rose 4.5% year-over-year to $2.6 billion, slightly surpassing consensus estimates, driven by increased net sales across both of its operating segments. Adjusted operating margin expanded by 190 basis points, fueling a 14.1% year-over-year rise in adjusted operating income. Adjusted EPS came in at $2.28, marking a 20.6% increase from the prior year and beating Wall Street expectations by 13.4%. Wall Street analysts are moderately optimistic about WAB's stock, with a "Moderate Buy" rating overall. Among the 11 analysts covering the stock, six recommend "Strong Buy" and five advise 'Hold.' The mean price target for WAB is $216.40, indicating a marginal potential upside from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
18-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Wabtec's Q1 Earnings Call
Westinghouse Air Brake Technologies' first quarter results were well received by the market, as management pointed to a combination of international growth and disciplined cost controls as key drivers. CEO Rafael Santana highlighted that 'amplified cost control levers' and a business mix weighted toward higher-margin international opportunities contributed to margin expansion and profitability. The quarter also benefited from strong service activity and favorable timing of expenses, which management described as partially offsetting a more muted environment in North America. Is now the time to buy WAB? Find out in our full research report (it's free). Revenue: $2.61 billion vs analyst estimates of $2.63 billion (4.5% year-on-year growth, 0.8% miss) Adjusted EPS: $2.28 vs analyst estimates of $2.03 (12.5% beat) Adjusted EBITDA: $608 million vs analyst estimates of $561 million (23.3% margin, 8.4% beat) The company reconfirmed its revenue guidance for the full year of $10.88 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $8.65 at the midpoint, a 1.2% increase Operating Margin: 18.2%, up from 16.5% in the same quarter last year Backlog: $22.3 billion at quarter end Organic Revenue rose 5.3% year on year (11.9% in the same quarter last year) Market Capitalization: $34.38 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rob Wertheimer (Melius Research) pressed on North America's softness; CEO Rafael Santana said international growth and higher-margin orders are offsetting regional weakness for now, though North American demand remains 'customer specific.' Adam Roszkowski (Bank of America) inquired about tariff assumptions in guidance; Santana and CFO John Olin clarified forecasts include first-round tariffs but exclude reciprocal tariffs, which are pending further policy clarity. Jerry Revich (Goldman Sachs) asked about the impact of tariffs on integration strategy; Santana said there is no pivot planned, and cost-savings initiatives are expected to remain intact regardless of tariff changes. Daniel Imbro (Stephens) queried about the impact of tariffs on freight components and pricing; Olin declined to quantify the effect but stressed ongoing collaboration with stakeholders and strategies to minimize margin erosion. James (Jefferies, for Saree Boroditsky) questioned the margin gap between international and North American operations; Olin stated international margins are structurally higher due to product maturity and operational improvements and expects this differential to persist. In future quarters, the StockStory team will watch (1) the pace of international order conversion and execution, especially in service and digital solutions, (2) the company's ability to sustain margin improvements as sales mix shifts and tariffs evolve, and (3) the effectiveness of cost management and supply chain adjustments in protecting profitability. Progress on portfolio optimization and integration initiatives will also be key signposts for tracking Wabtec's performance. Wabtec currently trades at $201, up from $171.80 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
WAB Q1 Earnings Call: International Strength, Cost Controls, and Tariff Uncertainty Shape Outlook
Rail equipment company Westinghouse Air Brake Technologies (NYSE:WAB) fell short of the market's revenue expectations in Q1 CY2025 as sales rose 4.5% year on year to $2.61 billion. The company's full-year revenue guidance of $10.88 billion at the midpoint came in 0.8% below analysts' estimates. Its non-GAAP profit of $2.28 per share was 12.5% above analysts' consensus estimates. The stock traded up 7.3% to $184.40 after reporting and hosting the earnings call. Is now the time to buy WAB? Find out in our full research report (it's free). Revenue: $2.61 billion vs analyst estimates of $2.63 billion (4.5% year-on-year growth, 0.8% miss) Adjusted EPS: $2.28 vs analyst estimates of $2.03 (12.5% beat) Adjusted EBITDA: $608 million vs analyst estimates of $561 million (23.3% margin, 8.4% beat) The company reconfirmed its revenue guidance for the full year of $10.88 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $8.65 at the midpoint, a 1.2% increase Operating Margin: 18.2%, up from 16.5% in the same quarter last year Free Cash Flow Margin: 5.6%, down from 12.1% in the same quarter last year Backlog: $22.3 billion at quarter end Organic Revenue rose 5.3% year on year (11.9% in the same quarter last year) Market Capitalization: $31.14 billion Westinghouse Air Brake Technologies' first quarter results reflected growth in international sales, higher-margin service activity, and proactive expense management in response to a volatile economic environment. Management also took defensive steps to optimize operational spending, reallocating production capacity between services and new equipment to adapt to market demand. Looking ahead, guidance is being influenced by both persistent uncertainties and areas of opportunity. Santana emphasized caution due to ongoing tariff volatility, particularly in North America, and highlighted the company's ability to take pricing and sourcing actions to mitigate these impacts. The leadership team expects continued strength from its international installed base and ongoing integration and portfolio optimization efforts to underpin earnings growth, while remaining focused on driving profitable growth into 2026 and beyond. Management's remarks centered on the impact of international markets, cost initiatives, and segment mix. The quarter's upside in margins and adjusted EPS was largely credited to operational adjustments and external market forces. International market outperformance: Management noted that international regions, including Africa and Asia-Pacific, contributed higher growth and delivered better profitability than North America. This was attributed to expanding installed base, infrastructure investment, and favorable market dynamics. Service-driven sales mix: A significant portion of first-quarter growth was driven by the services group, benefiting from timing of overhauls and modernizations. This mix shift temporarily boosted margins, though management expects a return to new locomotive production in coming quarters. Proactive cost controls: The leadership team amplified cost management in light of economic and tariff uncertainty. Initiatives included tightening discretionary spending, holding positions open, and scrutinizing new investments—measures described as incremental to structural integration and portfolio optimization programs. Portfolio and integration initiatives: The company advanced integration 3.0 and portfolio optimization strategies, aiming to eliminate low-margin revenue and reduce manufacturing complexity. These efforts are expected to yield $100–125 million in cost savings over time. Tariff and supply chain mitigation: Management discussed ongoing actions to offset tariff-related cost pressures, including USMCA (United States-Mexico-Canada Agreement) exemptions, local sourcing, and price adjustments. While reciprocal tariffs remain a risk, the company believes it can maintain margins through these levers. Management's outlook for the rest of the year is shaped by tariff-related risk, international strength, and the company's ability to manage business mix and operational efficiency. International installed base expansion: Continued growth in international locomotive and transit markets is expected to drive higher-margin sales and increase demand for aftermarket services, supporting both revenue and profitability. Tariff and economic volatility: Leadership highlighted uncertainty surrounding additional tariffs, especially reciprocal measures, as a potential headwind impacting both costs and customer investment timing, particularly in North America. Cost discipline and integration savings: The ongoing focus on cost controls and execution of integration and portfolio optimization initiatives is expected to support margin resilience and offset external pressures. Rob Wertheimer (Melius Research): Asked about the impact of North American softness and whether international growth offsets this. Management replied that international momentum and higher profitability are compensating for North American weakness, with a focus on maintaining quality backlog. Adam Roszkowski (Bank of America): Sought clarity on how tariff assumptions are reflected in guidance. Management said guidance incorporates current tariffs but excludes reciprocal tariffs due to uncertainty and will adjust as policy evolves. Angel Castillo (Morgan Stanley): Requested quantification of Q1 margin drivers and the impact of business mix on future quarters. Management declined to specify figures but emphasized that cost controls and productivity gains will have a lasting impact, while mix benefits are expected to moderate. Daniel Imbro (Stephens): Asked about the sustainability of free cash flow given first-quarter declines. Management cited timing effects from securitization changes and reaffirmed full-year conversion expectations, noting future quarters should normalize. James (Jefferies): Inquired about the structural drivers of international margin superiority and the permanence of recent cost controls. Management explained that international margin strength is long-standing and the recent cost actions are above and beyond structural optimization efforts. In upcoming quarters, the StockStory team will watch closely for (1) further evidence that international installed base growth is sustaining higher-margin service revenue, (2) the company's ability to offset tariff headwinds through pricing and sourcing actions, and (3) execution of integration and portfolio optimization initiatives that deliver targeted cost savings. Progress in these areas will be critical for maintaining profit growth amid persistent economic and policy uncertainties. Should you jump in or cash out of WAB? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
20-04-2025
- Business
- Yahoo
Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Westinghouse Air Brake Technologies (NYSE:WAB) has had a rough three months with its share price down 15%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Westinghouse Air Brake Technologies' ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. We've discovered 1 warning sign about Westinghouse Air Brake Technologies. View them for free. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Westinghouse Air Brake Technologies is: 11% = US$1.1b ÷ US$10b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.11 in profit. View our latest analysis for Westinghouse Air Brake Technologies Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. When you first look at it, Westinghouse Air Brake Technologies' ROE doesn't look that attractive. Next, when compared to the average industry ROE of 14%, the company's ROE leaves us feeling even less enthusiastic. However, we we're pleasantly surprised to see that Westinghouse Air Brake Technologies grew its net income at a significant rate of 22% in the last five years. So, there might be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. We then compared Westinghouse Air Brake Technologies' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 16% in the same 5-year period. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is WAB worth today? The intrinsic value infographic in our free research report helps visualize whether WAB is currently mispriced by the market. Westinghouse Air Brake Technologies has a really low three-year median payout ratio of 16%, meaning that it has the remaining 84% left over to reinvest into its business. So it looks like Westinghouse Air Brake Technologies is reinvesting profits heavily to grow its business, which shows in its earnings growth. Additionally, Westinghouse Air Brake Technologies has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 11% over the next three years. The fact that the company's ROE is expected to rise to 17% over the same period is explained by the drop in the payout ratio. In total, it does look like Westinghouse Air Brake Technologies has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
