NYSE$WAB

Wabtec Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Wabtec delivered a strong quarterly performance with growth in sales and earnings.

Wabtec reported strong third quarter 2022 results with sales growth of 9.1% to $2.08 billion. GAAP earnings per share were $0.88, up 27.5% versus the third quarter of 2021. Adjusted earnings per share were $1.22, up 7.0% versus the same quarter a year ago. Cash from operations was $204 million.

  • Sales increased 9.1% compared to the year-ago quarter driven by significantly higher Freight segment sales, partially offset by lower Transit segment sales. On a constant currency basis, consolidated sales were up 14.3%.
  • GAAP operating margin was up 1.1 percentage points behind lower restructuring and transaction costs. Adjusted operating margin was lower due to a less rich mix of sales from significantly higher locomotive sales in the quarter.
  • GAAP and adjusted EPS increased from the year-ago quarter primarily due to higher sales and disciplined cost management. GAAP EPS further benefited from lower restructuring and transaction costs.
  • Total Backlog of $22.61 Billion, Up $ 0.77 Billion and Up $1.52 Billion Year-Over- Year on Constant Currency Basis

Headline financials

Total Revenue

$2.08B

Previous: $1.91B+9.1%
EPS (adj)

$1.22

Previous: $1.14+7.0%
GAAP Operating Margin

12.5%

No prior period
Adjusted Operating Margin

16.4%

Previous: 17.0%-3.5%
Total Backlog

$22.6B

Previous: $21.8B+3.5%
12-Month Backlog

$6.27B

Previous: $5.71B+9.8%
Capital Expenditures

-$82M

Previous: -$78.5M-4.5%
Free Cash Flow

$78M

Previous: $52.1M+49.7%
Net Income

$160M

Previous: $131M+22.5%
Operating Income

$261M

Previous: $217M+20.3%
Gross Profit

$648M

Previous: $602M+7.6%
Cash & Equivalents

$514M

Previous: $456M+12.6%
Total Assets

$18.3B

Previous: $18.4B-0.5%
Stock-Based Comp

$10M

Previous: $10M+0.0%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.08B

Q3 2022+9.1%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Wabtec · $2.08B total across 2 segments · Q3 2022

  • Freight
    $1.53B+18.2%
  • Transit
    $550M-10.1%

Forward guidance

Wabtec updated its 2022 financial guidance with sales expected to be in a range of $8.15 billion to $8.35 billion versus previous guidance of $8.3 billion to $8.6 billion. Adjusted earnings per diluted share is expected to be in a range of $4.75 to $4.95 versus previous guidance of $4.70 to $5.00. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90 percent.

Tailwinds

  • Sales expected to be in a range of $8.15 billion to $8.35 billion
  • Adjusted earnings per diluted share is expected to be in a range of $4.75 to $4.95
  • Strong cash flow generation
  • Operating cash flow conversion greater than 90 percent
  • Technologically differentiated portfolio of products and solutions

Headwinds

  • Reduction reflects the expected impacts from unfavorable foreign currency exchange in the second half of the year.
  • Significant headwinds from negative foreign currency exchange
  • Supply chain constraints
  • High input costs
  • Costs associated with the cyber incident

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 Q3 2022

Historical avgQ3 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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