NYSE$WAB

Wabtec Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Wabtec reported strong operational quarter, delivering for customers, driving cash generation, and reducing costs.

Wabtec reported first quarter 2021 earnings per diluted share of $0.59 and adjusted earnings per diluted share of $0.89. Total sales were $1.8 billion and cash from operations was strong at $292 million.

  • Delivered Strong Cash Flow from Operations of $292 Million
  • First Quarter Reported GAAP Earnings Per Share of $0.59; Adjusted EPS of $0.89
  • Converted Key Long-term Orders, Strengthening Book-to-Bill
  • Expanded Into Global Maintenance of Way Market with Strategic Acquisition of Nordco

Headline financials

Total Revenue

$1.83B

Previous: $1.93B-5.2%
EPS (adj)

$0.89

Previous: $0.97-8.2%
Total Backlog

$21.7B

Previous: $21.5B+0.9%
12-Month Backlog

$5.7B

Previous: $5.6B+1.8%
Capital Expenditures

-$26.5M

Previous: -$33.3M+20.4%
Free Cash Flow

$85.9M

Previous: $78.3M+9.7%
Net Income

$112M

Previous: $112M+0.7%
Operating Income

$192M

Previous: $217M-11.8%
Gross Profit

$534M

Previous: $579M-7.7%
Cash & Equivalents

$484M

Previous: $616M-21.5%
Total Assets

$18.5B

Previous: $18.8B-1.2%
Stock-Based Comp

$8M

Previous: $7.3M+9.6%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$1.83B

Q1 2021-5.2%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Wabtec · $2.19B total across 2 segments · Q1 2023

  • Freight
    $1.57B+18.5%
  • Transit
    $628M+3.8%

Forward guidance

Wabtec updated its 2021 sales guidance to a range of $7.7 billion to $7.9 billion, GAAP earnings per diluted share guidance to between $2.80 to $3.05 and adjusted earnings per diluted share to between $4.05 to $4.30. The adjusted guidance excludes estimated expenses for restructuring and amortization expenses. With cost actions and synergies stemming from the Wabtec and GE Transportation merger on-track, we expect to achieve a run rate savings of $250 million in 2021 as well as margin expansion through continued cost actions. For full year 2021, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90%.

Tailwinds

  • Sales guidance between $7.7 billion to $7.9 billion
  • GAAP earnings per diluted share guidance between $2.80 to $3.05
  • Adjusted earnings per diluted share between $4.05 to $4.30
  • Achieve a run rate savings of $250 million in 2021
  • Expect strong cash flow generation with operating cash flow conversion greater than 90%

Headwinds

  • The adjusted guidance excludes estimated expenses for restructuring and amortization expenses.
  • Decrease in sales compared to the year-ago quarter was primarily driven by lower sales in Freight Equipment
  • Organic transit segment sales were primarily impacted by the on-going disruption caused by the COVID-19 pandemic.
  • Freight segment adjusted income from operations decreased 11 percent from the year-ago quarter primarily driven by mix of sales
  • Lower absorption of fixed costs due to decreased locomotive deliveries offset somewhat by synergies and lower operating costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.0%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+9.9%

Q1 2024

Best reaction

-14.9%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+3.7%-0.3%
Q4 2025+3.2%+3.9%-3.9%
Q3 2025-2.3%+1.2%+1.1%
Q2 2025-1.8%-0.9%-2.9%
Q1 2025+5.9%+6.7%+16.0%
Q4 2024-9.1%-9.6%-14.1%
Q3 2024-0.3%+0.6%+5.0%
Q2 2024-5.3%-4.8%-1.1%
Q1 2024+9.9%+9.9%+14.3%
Q4 2023-1.8%-1.6%+2.5%
Q3 2023+4.6%+5.6%+17.1%
Q2 2023+4.9%+5.4%-1.2%
Q1 2023-3.0%-2.6%-6.0%
Q4 2022+0.9%+2.0%-9.9%
Q3 2022-3.0%+2.3%+10.5%
Q2 2022+0.7%+2.3%-6.3%
Q1 2022+8.2%+6.3%+9.7%
Q4 2021+7.0%+7.9%+7.2%
Q3 2021-0.9%-1.3%+1.5%
Q2 2021+1.9%+2.8%+8.2%
Q1 2021-4.1%-5.0%-3.3%
Q4 2020-6.8%-6.1%-4.7%
Q3 2020+5.6%+16.8%+31.4%
Q2 2020+5.3%+0.3%+6.8%
Q1 2020+1.3%+5.3%+20.5%
Q4 2019+2.1%+1.9%-44.7%
Q3 2019+9.4%+13.7%+15.0%
Q2 2019+9.3%+6.0%-5.0%
Q1 2019-4.4%-3.3%-14.5%
Q4 2018+0.8%-1.3%-1.9%
Q3 2018-8.9%-5.5%+2.9%
Q2 2018+4.2%+2.9%+3.4%
Q1 2018+1.5%+1.5%+10.2%
Q4 2017+5.8%+7.9%+1.4%
Q3 2017+1.6%-0.2%-4.3%
Q2 2017-14.9%-13.7%-19.3%
Q1 2017+4.6%+2.1%+0.4%
Q4 2016-8.7%-9.5%-13.4%
Q3 2016-5.8%-6.2%+6.2%
Q2 2016-3.5%-3.7%+6.7%
Q1 2016+8.4%
Q4 2015-3.2%
Q3 2015-6.0%
Q2 2015-2.0%
Q1 2015+2.6%
Q4 2014+4.8%
Q3 2014+5.7%
Q2 2014+4.8%
Q1 2014+1.0%
Q4 2013+2.8%
Q3 2013+0.4%
Q2 2013+0.7%
Q1 2013+2.1%
Q4 2012+2.1%
Q3 2012-2.4%
Q2 2012+3.6%
Q1 2012-1.1%
Q4 2011+0.8%
Q3 2011-3.2%
Q2 2011-8.5%
Q1 2010+1.6%
Q1 2011+1.7%
Q4 2008+3.8%
Q4 2010+3.8%
Q3 2009-0.4%
Q3 2010-0.4%
Q4 2009-1.8%
Q2 2009-1.8%
Q2 2010-1.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro