Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Wabtec (NYSE:WAB) and its peers.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 11 heavy transportation equipment stocks we track reported a strong Q1; on average, revenues beat analyst consensus estimates by 3.4%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and heavy transportation equipment stocks have held roughly steady amidst all this, with share prices up 1.4% on average since the previous earnings results.
Wabtec (NYSE:WAB) Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.
Wabtec reported revenues of $2.50 billion, up 13.8% year on year, topping analysts' expectations by 4.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue and earnings estimates.
“The Wabtec team delivered a strong start to 2024, continuing the momentum experienced in 2023. This was evidenced by higher sales, margin expansion, and increased earnings in the quarter,” said Rafael Santana, Wabtec’s President and CEO.
The stock is up 7% since the results and currently trades at $158.89.
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Best Q1: Blue Bird (NASDAQ:BLBD) Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
Blue Bird reported revenues of $345.9 million, up 15.4% year on year, outperforming analysts' expectations by 15.9%. It was an incredible quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
Blue Bird scored the biggest analyst estimates beat among its peers. The stock is up 49.1% since the results and currently trades at $56.
Weakest Q1: Wabash (NYSE:WNC) Headquartered in Indiana, Wabash National (NYSE:WNC) is a diversified industrial company, mainly producing semi-trailers and liquid transportation systems.
Wabash reported revenues of $515.3 million, down 17% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.
The stock is down 16.6% since the results and currently trades at $21.46.
Oshkosh (NYSE:OSK) Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Oshkosh reported revenues of $2.54 billion, up 12.2% year on year, surpassing analysts' expectations by 2.2%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 10.8% since the results and currently trades at $108.2.
Greenbrier (NYSE:GBX) Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $862.7 million, down 23.1% year on year, surpassing analysts' expectations by 2.5%. It was a very strong quarter for the company, with an impressive beat of analysts' volume estimates.
Greenbrier had the slowest revenue growth among its peers. The stock is down 5.3% since the results and currently trades at $49.55.
