Wabtec (NYSE:WAB) Updates FY 2025 Earnings Guidance

Key Points

• Wabtec updated its FY 2025 earnings guidance to an EPS range of 8.850-9.050 and revenue guidance of $10.9 billion-$11.2 billion, slightly below consensus estimates.
• The company reported a quarterly EPS of $2.32, exceeding expectations, and a revenue increase of 8.4% from the previous year.
• Wabtec plans to pay a quarterly dividend of $0.25 per share on November 26th, with a dividend yield of 0.5%.

Wabtec (NYSE:WAB - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 8.850-9.050 for the period, compared to the consensus earnings per share estimate of 8.940. The company issued revenue guidance of $10.9 billion-$11.2 billion, compared to the consensus revenue estimate of $11.1 billion.

Wabtec Trading Up 1.0%

Shares of WAB opened at $198.01 on Wednesday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.76 and a quick ratio of 1.05. Wabtec has a 1 year low of $151.81 and a 1 year high of $216.10. The company has a 50 day simple moving average of $193.79 and a two-hundred day simple moving average of $195.21. The firm has a market cap of $33.85 billion, a P/E ratio of 29.55, a price-to-earnings-growth ratio of 1.52 and a beta of 1.10.

Wabtec (NYSE:WAB - Get Free Report) last released its earnings results on Wednesday, October 22nd. The transportation company reported $2.32 EPS for the quarter, topping the consensus estimate of $2.28 by $0.04. Wabtec had a net margin of 10.92% and a return on equity of 13.65%. The firm had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.88 billion. During the same quarter in the previous year, the firm earned $2.00 earnings per share. The company's quarterly revenue was up 8.4% compared to the same quarter last year. Wabtec has set its FY 2025 guidance at 8.850-9.050 EPS. On average, equities analysts expect that Wabtec will post 8.54 earnings per share for the current fiscal year.

Wabtec Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Wednesday, November 12th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Wednesday, November 12th. Wabtec's dividend payout ratio is 14.93%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on WAB. Citigroup assumed coverage on Wabtec in a report on Monday, September 22nd. They issued a "buy" rating and a $225.00 target price on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Wabtec in a research note on Wednesday, October 8th. Bank of America upped their price objective on Wabtec from $231.00 to $236.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Wall Street Zen downgraded Wabtec from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Susquehanna upped their price target on shares of Wabtec from $210.00 to $235.00 and gave the company a "positive" rating in a research note on Friday, July 25th. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $224.75.

Insider Transactions at Wabtec

In other Wabtec news, CEO Rafael Santana sold 1,798 shares of the business's stock in a transaction on Tuesday, October 14th. The shares were sold at an average price of $195.04, for a total transaction of $350,681.92. Following the transaction, the chief executive officer owned 133,133 shares in the company, valued at $25,966,260.32. The trade was a 1.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders sold 6,281 shares of company stock valued at $1,204,240 in the last ninety days. 1.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Wabtec

Hedge funds have recently added to or reduced their stakes in the company. IHT Wealth Management LLC lifted its stake in Wabtec by 1.7% in the second quarter. IHT Wealth Management LLC now owns 4,571 shares of the transportation company's stock worth $957,000 after purchasing an additional 78 shares during the last quarter. Bank of Nova Scotia grew its stake in shares of Wabtec by 0.5% during the second quarter. Bank of Nova Scotia now owns 17,890 shares of the transportation company's stock valued at $3,745,000 after buying an additional 97 shares during the last quarter. EP Wealth Advisors LLC raised its holdings in shares of Wabtec by 8.4% in the second quarter. EP Wealth Advisors LLC now owns 4,055 shares of the transportation company's stock worth $849,000 after buying an additional 313 shares during the period. Guggenheim Capital LLC lifted its stake in shares of Wabtec by 7.4% during the 2nd quarter. Guggenheim Capital LLC now owns 4,938 shares of the transportation company's stock worth $1,034,000 after acquiring an additional 342 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in Wabtec by 11.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 5,637 shares of the transportation company's stock valued at $1,171,000 after acquiring an additional 571 shares during the period. 91.69% of the stock is currently owned by institutional investors.

About Wabtec

Westinghouse Air Brake Technologies Corporation, together with its subsidiaries, provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It offers diesel-electric, battery, and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products.

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