Wabtec Misses and Guides Lower

This morning, Wabtec (WAB) became our latest stock to report earnings and it turned out to be our latest disappointment. For Q2, the freight services company earned 75 cents per share which included five cents per share due to the “net effect of the restructuring and transaction expenses and the interest expense benefit.” Wall Street had been expecting 94 cents per share.

For all of 2017, Wabtec now expects sales of $3.85 billion and EPS between $3.55 and $3.70. That’s a reduction from their April forecast of $3.95 to $4.15 per share.

Raymond T. Betler, Wabtec’s president and chief executive officer, said: “We remain confident in our future growth opportunities, even as we manage aggressively through our short-term challenges. In transit, we have a record and growing backlog, with significant projects in all major markets around the world, and we are making meaningful progress in the Faiveley integration, with margins improving during the year. In freight, our backlog has now increased for three consecutive quarters, and demand appears to be stable in our key markets. Finally, we continue to invest in our balanced growth strategies, including new products and acquisitions, around the world.”

The shares are down about 11% this morning.

Posted by on July 25th, 2017 at 10:33 am


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