NYSE$WAB

Wabtec Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Wabtec reported strong Q4 and full year results, driven by the GE Transportation acquisition and growth opportunities in services, transit, and international markets.

Wabtec reported strong Q4 2019 results with GAAP earnings per share of $0.71 and adjusted EPS of $1.04. Sales for the quarter were $2.4 billion. The company's multi-year backlog remains strong at $22.4 billion.

  • GAAP earnings per share was $0.71; adjusted EPS was $1.04.
  • GAAP and adjusted sales were $2.4 Billion.
  • Operating cash flow was over $1.0 Billion for the full year.
  • Multi-year backlog was $22.4 billion.

Headline financials

Total Revenue

$2.37B

Previous: $1.12B+111.8%
EPS (adj)

$1.04

Previous: $0.97+7.2%
Cash from Operations

$448M

No prior period
Total Backlog

$22.4B

No prior period
12-Month Backlog

$5.6B

No prior period
Capital Expenditures

$72.7M

Previous: $29.1M+150.1%
Free Cash Flow

$375M

Previous: $248M+51.5%
Net Income

$137M

Previous: $34.4M+298.8%
Operating Income

$226M

Previous: $117M+93.4%
Gross Profit

$675M

Previous: $287M+134.8%
Cash & Equivalents

$604M

Previous: $581M+4.0%
Total Assets

$18.9B

Previous: $8.65B+118.4%
Stock-Based Comp

$13.9M

Previous: $4.83M+187.7%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.37B

Q4 2019+111.8%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Wabtec · $2.37B total across 2 segments · Q4 2019

  • Freight
    $1.67B
  • Transit
    $701M

Forward guidance

Wabtec issued 2020 GAAP sales guidance of about $8.7 billion, GAAP income from operations guidance of about $1.1 billion and GAAP earnings per diluted share guidance to between $3.20 to $3.50. Wabtec issued guidance for adjusted income from operations of about $1.4 billion and adjusted EBITDA of about $1.6 billion. Wabtec also issued 2020 guidance for adjusted earnings per diluted share to between $4.50 to $4.80.

Tailwinds

  • GAAP sales guidance of about $8.7 billion
  • GAAP income from operations guidance of about $1.1 billion
  • GAAP earnings per diluted share guidance to between $3.20 to $3.50
  • Adjusted income from operations of about $1.4 billion
  • Adjusted earnings per diluted share guidance to between $4.50 to $4.80

Headwinds

  • Wabtec expects GAAP cash flow from operations to be about $900 million and to include approximately $100 million of cash outflows related to prior year restructuring and litigation costs.
  • Wabtec anticipates 2020 first quarter sales, adjusted net income, adjusted EBITDA and adjusted earnings per diluted share to be lower when compared to the remainder of 2020
  • Expected first quarter seasonality
  • Project scheduling will cause a lower Q1
  • Improvement expected through the rest of the year.

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 Q4 2019

Historical avgQ4 2019

+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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