NYSE$WAB

Wabtec Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Wabtec reported strong results driven by sales growth and disciplined cost management.

Wabtec reported Q4 2022 results with sales up 11.2% to $2.31 billion and adjusted EPS of $1.30, up 10.2% year-over-year. The company highlighted strong performance in the Freight segment and a multi-year backlog of $22.4 billion.

  • Sales increased by 11.2% to $2.31 billion, with a 15.7% increase on a constant currency basis.
  • GAAP EPS was $0.86, a decrease of 15.7% compared to the previous year, while adjusted EPS rose by 10.2% to $1.30.
  • Cash from operations reached $410 million, driven by favorable working capital changes.
  • The company's backlog remains strong at $22.4 billion, providing visibility for future performance.

Headline financials

Total Revenue

$2.31B

Previous: $2.07B+11.2%
EPS (adj)

$1.30

Previous: $1.18+10.2%
Adjusted Operating Margin

15.3%

Previous: 16.1%-5.0%
Total Backlog

$22.4B

Previous: $22.2B+1.2%
12-Month Backlog

$6.76B

Previous: $6.27B+7.8%
Capital Expenditures

$67M

Previous: $51.5M+30.1%
Free Cash Flow

$343M

Previous: $262M+30.8%
Net Income

$158M

Previous: $193M-18.1%
Operating Income

$247M

Previous: $264M-6.4%
Gross Profit

$652M

Previous: $652M+0.0%
Cash & Equivalents

$541M

Previous: $473M+14.4%
Total Assets

$18.5B

Previous: $18.5B+0.3%
Stock-Based Comp

$11M

Previous: $11.8M-6.8%

Revenue & EPS history

Wabtec · Revenue · Quarterly

$2.31B

Q4 2022+11.2%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Wabtec · $2.31B total across 2 segments · Q4 2022

  • Freight
    $1.67B
  • Transit
    $637M

Forward guidance

Wabtec issued 2023 financial guidance with sales expected to be in a range of $8.7 billion to $9.0 billion. Adjusted earnings per diluted share is expected to be in a range of $5.15 to $5.55. For full year 2023, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90 percent.

Tailwinds

  • Sales expected to be in a range of $8.7 billion to $9.0 billion.
  • Adjusted earnings per diluted share is expected to be in a range of $5.15 to $5.55.
  • Strong cash flow generation expected.
  • Operating cash flow conversion greater than 90 percent expected.
  • Momentum across the business

Headwinds

  • Changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, inflation, supply chain disruptions, foreign currency exchange, and industry consolidation
  • Changes in the financial condition or operating strategies of Wabtec’s customers
  • Unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec
  • Inability to retain and hire key personnel
  • Evolving legal, regulatory and tax regimes

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 2022

Historical avgQ4 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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