Westinghouse Air Brake Technologies Earnings: Here’s Why the Stock is Down Now

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.2%.

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Westinghouse Air Brake Technologies Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.03% to $1.44 in the quarter versus EPS of $1.22 in the year-earlier quarter.

Revenue: Rose 5.52% to $615.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Westinghouse Air Brake Technologies Corporation reported adjusted EPS income of $1.44 per share. By that measure, the company beat the mean analyst estimate of $1.40. It missed the average revenue estimate of $638.8 million.

Quoting Management: Albert J. Neupaver, Wabtec’s president and chief executive officer, said: “We’re off to a good start in 2013, even with a global economy that is slowly recovering. Over time, as countries around the world invest in their freight rail and passenger transportation systems, we expect to continue to benefit from our diverse business model. We remain focused on executing our strategic growth initiatives, and on rigorous application of the Wabtec Performance System to drive productivity and cost improvements.”

Key Stats (on next page)…

Revenue increased 0.84% from $610.4 million in the previous quarter. EPS increased 7.46% from $1.34 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.48 to a profit $1.51. For the current year, the average estimate has moved up from a profit of $5.79 to a profit of $5.90 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)