Let’s dig into the relative performance of Wabtec (NYSE:WAB) and its peers as we unravel the now-completed Q2 heavy transportation equipment earnings season.
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 13 heavy transportation equipment stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and heavy transportation equipment stocks have had a rough stretch. On average, share prices are down 6.8% since the latest 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 $2.64 billion, up 9.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ organic revenue estimates.
“The Wabtec team delivered another strong quarter, evidenced by robust sales and earnings per share growth,” said Rafael Santana, Wabtec’s President and CEO.
Wabtec scored the highest full-year guidance raise of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 1.2% since reporting and currently trades at $47.96.
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Best Q2: Blue Bird (NASDAQ:BLBD) With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $333.4 million, up 13.3% year on year, outperforming analysts’ expectations by 2%. It was a solid quarter for the company with an impressive beat of analysts’ earnings estimates and optimistic EBITDA guidance for the full year.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $47.96.
Slowest Q2: Shyft (NASDAQ:SHYF) Notably receiving an order from FedEx (NYSE:FDX) for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $192.8 million, down 14.4% year on year, falling short of analysts’ expectations by 4.3%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 18.8% since the results and currently trades at $13.80.
Cummins (NYSE:NYSE:CMI) With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.80 billion, up 1.8% year on year, surpassing analysts’ expectations by 5.3%. More broadly, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $292.38.
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 $2.85 billion, up 18% year on year, surpassing analysts’ expectations by 2.5%. Zooming out, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates and optimistic earnings guidance for the full year.
Oshkosh pulled off the fastest revenue growth among its peers. The stock is down 11.5% since reporting and currently trades at $101.17.
This content was originally published on Stock Story
