NYSE$WAB

Wabtec Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Wabtec reported strong results driven by increased growth in sales, margin, earnings, and operating cash flow.

Wabtec reported a strong third quarter with sales growth of 22.5% to $2.55 billion and adjusted EPS of $1.70, up 39.3%. The company generated $425 million in operating cash flow, resulting in a cash conversion of 116%.

  • Sales increased 22.5% compared to the year-ago quarter driven by increased sales across the Freight and Transit segments.
  • GAAP operating margin was higher than the prior year at 14.5% and adjusted operating margin was higher than the prior year at 17.9%.
  • GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales and margin expansion, partially offset by increased interest expense.
  • The Company generated strong operating cash flow of $425 million resulting in a cash conversion of 116% for the third quarter 2023.

Headline financials

Total Revenue

$2.55B

Previous: $2.08B+22.5%
EPS (adj)

$1.70

Previous: $1.22+39.3%
GAAP Operating Margin

14.5%

Previous: 12.5%+16.0%
Adjusted Operating Margin

17.9%

Previous: 16.4%+9.1%
Total Backlog

$21.5B

Previous: $22.6B-5.0%
12-Month Backlog

$7.09B

Previous: $6.27B+13.1%
Capital Expenditures

-$109M

Previous: -$82M-32.9%
Free Cash Flow

$131M

Previous: $78M+67.9%
Net Income

$240M

Previous: $160M+50.0%
Operating Income

$370M

Previous: $261M+41.8%
Gross Profit

$792M

Previous: $648M+22.2%
Cash & Equivalents

$392M

Previous: $514M-23.7%
Total Assets

$18.8B

Previous: $18.3B+2.9%
Stock-Based Comp

$14M

Previous: $10M+40.0%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.55B

Q3 2023+22.5%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
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 2023 financial guidance with sales expected to be in a range of $9.50 billion to $9.70 billion and adjusted earnings per diluted share to be in a range of $5.80 to $6.00. For full year 2023, Wabtec expects cash flow generation with operating cash flow conversion of greater than 90 percent.

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 2023

Historical avgQ3 2023

+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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