NYSE$WAB

Wabtec Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Wabtec reported strong Q2 results and updated 2021 guidance.

Wabtec Corporation reported a strong second quarter in 2021, with earnings per diluted share of $0.66 and adjusted earnings per diluted share of $1.06. Total sales reached $2.0 billion, and cash from operations was robust at $223 million. The company raised its full-year revenue and earnings per share guidance.

  • GAAP earnings per share was $0.66, while adjusted EPS was $1.06.
  • Total sales amounted to $2.0 billion.
  • Cash flow from operations stood strong at $223 million.
  • The company's 12-month backlog reached its highest level since the second quarter of 2019.

Headline financials

Total Revenue

$2.01B

Previous: $1.74B+15.8%
EPS (adj)

$1.06

Previous: $0.87+21.8%
GAAP Operating Margin

0.1%

Previous: 9.2%-98.9%
Adjusted Operating Margin

0.2%

Previous: 15.1%-99.0%
Total Backlog

$21.5B

No prior period
12-Month Backlog

$5.8B

No prior period
Capital Expenditures

-$55.5M

Previous: -$67.6M+17.9%
Free Cash Flow

$69.3M

Previous: $19.2M+260.9%
Net Income

$125M

Previous: $86.8M+43.8%
Operating Income

$203M

Previous: $159M+27.5%
Gross Profit

$580M

Previous: $487M+19.2%
Cash & Equivalents

$454M

Previous: $588M-22.9%
Total Assets

$18.5B

Previous: $18.5B+0.3%
Stock-Based Comp

$16.2M

Previous: -$1.6M+1112.5%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.01B

Q2 2021+15.8%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Wabtec · $2.01B total across 2 segments · Q2 2021

  • Freight
    $1.34B+10.9%
  • Transit
    $676M+27.0%

Forward guidance

Wabtec updated its 2021 sales guidance to a range of $7.9 billion to $8.2 billion, GAAP earnings per diluted share guidance to between $2.87 to $3.07 and adjusted earnings per diluted share to between $4.15 to $4.35. The adjusted guidance excludes estimated expenses for restructuring, transaction and amortization expenses.

Tailwinds

  • Sales guidance updated to $7.9B - $8.2B.
  • GAAP EPS guidance updated to $2.87 - $3.07.
  • Adjusted EPS guidance updated to $4.15 - $4.35.
  • Expected run rate savings of $250 million in 2021 from synergies.
  • Expected margin expansion through continued cost actions.

Headwinds

  • Adjusted guidance excludes restructuring expenses.
  • Adjusted guidance excludes transaction expenses.
  • Adjusted guidance excludes amortization expenses.
  • Severe disruption in India stemming from the pandemic.
  • Continued challenges in OE end-markets and inflationary pressures globally

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 Q2 2021

Historical avgQ2 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