Westinghouse Air Brake Technologies
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Westinghouse Air Brake Technologies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, and net margins increased.
Westinghouse Air Brake Technologies booked revenue of $534.6 million. The five analysts polled by S&P Capital IQ expected revenue of $497.3 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $393.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.96. The eight earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS of $0.95 for Q4 were 48% higher than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.6%, 240 basis points worse than the prior-year quarter. Operating margin was 14.3%, 30 basis points better than the prior-year quarter. Net margin was 8.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $522.4 million. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $4.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 410 members rating the stock outperform and 11 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Westinghouse Air Brake Technologies a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Westinghouse Air Brake Technologies is outperform, with an average price target of $78.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.