Wabtec's EPS Misses Estimates, Shares Slide Amid Market Trends

Wabtec misses EPS estimates, affecting stock outlook. The company's share price has dipped, lagging behind the broader market trends and indicating cautious sentiment among analysts.

Date: 21-03-2025

AI Rating: 5

Earnings Per Share (EPS): Wabtec reported an adjusted EPS of $1.68, which fell short of Wall Street expectations. This miss signals potential weaknesses in the company's operational performance, which may lead to a negative perception among investors.

Revenue Growth: The Transit segment showed positive growth with a 7.1% increase in net sales to $789 million, driven by strong aftermarket and original equipment sales. However, the Freight segment's sales remained nearly flat, indicating stagnation in part of the business.

Market Performance: Wabtec's stock has experienced a decline of 11.9% from its 52-week high of $210.88, and a year-to-date drop of 2.1%, underperforming compared to the Dow Jones' marginal decrease. Despite this, over the last 52 weeks, Wabtec shares have increased by 30.6%, outperforming the Dow, which rose by 7.3%.

Future Outlook: Wabtec anticipates revenues in the $10.7 billion to $11 billion range for fiscal 2025. Although this expectation seems positive, it needs to be assessed against the recent performance metrics and market conditions.

Given the mixed earnings report, cautious analyst optimism, and the company's trading position relative to moving averages, these factors could lead to fluctuations in Wabtec's stock price. Continuous monitoring of Wabtec’s future performance in relation to these metrics will be crucial for investors.

Stocks: WAB TRN