NYSE$WAB

Wabtec Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Wabtec reported strong results driven by sales growth and margin expansion.

Wabtec reported a 2.4% increase in sales to $2.07 billion. GAAP earnings per share was $1.02, and adjusted earnings per share increased by 20.4% to $1.18. The company issued 2022 financial guidance and announced a share buyback reauthorization of $750 million.

  • GAAP earnings per share was $1.02; adjusted earnings per share increased 20.4% to $1.18.
  • Sales grew 2.4% to $2.07 billion; GAAP operating margin was 12.7%; adjusted operating margin increased 210 bps to 16.1%.
  • Full-year cash flow from operations increased 36.9% to $1.07 billion; full-year operating cash flow conversion was 102%.
  • The company repurchased 1.05 million shares during the fourth quarter for $100 million and announced a $750 million share buyback reauthorization and a 25% increase in the quarterly dividend.

Headline financials

Total Revenue

$2.07B

Previous: $2.02B+2.4%
EPS (adj)

$1.18

Previous: $0.98+20.4%
GAAP Operating Margin

12.7%

No prior period
Adjusted Operating Margin

16.1%

No prior period
Total Backlog

$22.2B

Previous: $21.6B+2.6%
12-Month Backlog

$6.27B

Previous: $5.5B+14.0%
Capital Expenditures

$51.5M

Previous: $37.7M+36.6%
Free Cash Flow

$262M

Previous: $288M-8.9%
Net Income

$193M

Previous: $86.8M+122.4%
Operating Income

$264M

Previous: $161M+64.0%
Gross Profit

$652M

Previous: $456M+43.1%
Cash & Equivalents

$473M

Previous: $599M-21.0%
Total Assets

$18.5B

Previous: $18.5B+0.0%
Stock-Based Comp

$11.8M

Previous: $1.9M+521.1%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.07B

Q4 2021+2.4%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
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 initiated its 2022 financial guidance with sales expected 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 $4.65 to $5.05. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.

Tailwinds

  • Sales expected to be in a range of $8.30 billion to $8.60 billion.
  • Adjusted earnings per diluted share to be in a range of $4.65 to $5.05.
  • Expects strong cash flow generation.
  • Operating cash flow conversion of greater than 90 percent.
  • Breadth of product portfolio combined with multi-year backlog provides solid foundation for growth in 2022.

Headwinds

  • Unable to predict with reasonable certainty the impact and timing of restructuring-related and other charges.
  • Uncertainty regarding acquisition-related expenses.
  • Outcome of certain regulatory, legal and tax matters.
  • Financial impact of these items is uncertain and dependent on various factors, including timing.
  • Mixed market conditions improving throughout 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 2021

Historical avgQ4 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%

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