NYSE$WAB

Wabtec Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Wabtec demonstrated profitable growth, margin expansion, and backlog increase.

Wabtec reported a strong second quarter with sales growth of 1.8% to $2.05 billion and adjusted earnings per share of $1.23, up 16.0%. The company's total backlog increased to $23.23 billion, driven by strategic multi-year orders.

  • Total backlog increased by $1.70 billion to $23.23 billion.
  • GAAP earnings per share were $0.91, up 37.9% year-over-year.
  • Adjusted earnings per share were $1.23, up 16.0% year-over-year.
  • Cash from operations was $263 million.

Headline financials

Total Revenue

$2.05B

Previous: $2.01B+1.8%
EPS (adj)

$1.23

Previous: $1.06+16.0%
GAAP Operating Margin

12.9%

Previous: 0.1%+12672.3%
Adjusted Operating Margin

16.7%

Previous: 0.2%+10886.8%
Total Backlog

$23.2B

Previous: $21.5B+8.0%
12-Month Backlog

$6.57B

Previous: $5.8B+13.2%
Capital Expenditures

-$50M

Previous: -$55.5M+9.9%
Free Cash Flow

$116M

Previous: $69.3M+67.4%
Net Income

$166M

Previous: $125M+33.0%
Operating Income

$264M

Previous: $203M+29.9%
Gross Profit

$645M

Previous: $580M+11.2%
Cash & Equivalents

$501M

Previous: $454M+10.5%
Total Assets

$18.3B

Previous: $18.5B-1.0%
Stock-Based Comp

$10M

Previous: $16.2M-38.3%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.05B

Q2 2022+1.8%vs Q2 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Wabtec · $2.05B total across 2 segments · Q2 2022

  • Freight
    $1.49B+11.5%
  • Transit
    $558M-17.5%

Forward guidance

Wabtec updated its 2022 financial guidance with sales to be in a range of $8.30 billion to $8.60 billion and adjusted earnings per diluted share to be in a range of $4.70 to $5.00. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.

Tailwinds

  • Sales to be in a range of $8.30 billion to $8.60 billion.
  • Adjusted earnings per diluted share to be in a range of $4.70 to $5.00.
  • Strong cash flow generation.
  • Operating cash flow conversion of greater than 90 percent.
  • Increasing momentum in 2022 and beyond.

Headwinds

  • Rising costs.
  • Continued supply chain challenges.
  • Significant unfavorable foreign currency exchange.
  • Evolving legal, regulatory and tax regimes.
  • Potential disruptions, instability, and volatility in global markets from the imposition of economic sanctions on Russia resulting from the invasion of Ukraine.

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 2022

Historical avgQ2 2022

+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%

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