Wabtec Earned $1.05 per Share

This morning, we had our final earnings report for Q4. Wabtec (WAB) reported earnings of $1.05 per share which matched Wall Street’s consensus. Quarterly revenue increased 1.5% to $833 million which was a bit below consensus. For the year, Wabtec made $4.10 per share.

Raymond T. Betler, Wabtec’s president and chief executive officer, said: “We finished 2015 with a strong performance and are positioned for record results again in 2016, even as we face challenges in some of our key markets. We have responded to these challenges by accelerating our cost and efficiency improvement programs. At the same time, we continue to invest in our growth strategies and remain optimistic about our long-term prospects, thanks to continued investment in freight rail and passenger transit projects around the world. As always, we expect to benefit from our diversified business model, balanced growth strategies and rigorous application of the Wabtec Performance System.”

Wabtec also offered guidance for 2016. They see earnings ranging between $4.30 and $4.50 per share. Wall Street had been expecting $4.36 per share. Wabtec added, “The company expects 2016 quarterly results to improve sequentially during the year as it realizes the benefits of ongoing cost reduction initiatives and as projects already in backlog begin to ramp up.”

The stock gapped up at today’s open. At one point, WAB was up more than 10% today. Gradually, however, the sellers returned and WAB is now down 2% on the day.

Posted by on February 18th, 2016 at 11:15 am


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