Wabtec Corporation's Q4 results come under the spotlight, with revenue and earnings per share (EPS) both missing estimates. Despite this, the firm's Q4 results demonstrated strong performance, bolstering FY25 guidance and showcasing record cash flow, powering a 25% dividend hike. This strong cash flow, unfortunately, failed to prevent the post-earnings tumble in WAB stock prices, caused by earnings miss and weak guidance. However, KeyBanc Capital Markets suggests the current weakness offers attractive entry point into the stock.
Amidst these financial updates, the firm also announces key strategic moves, including the finalization of locomotive orders with TRANSAP (Transportes y Servicios S.A.), a $405-million locomotive deal with Kazakhstan Temir Zholy, and securing a massive $248 million locomotive deal in Guinea. The appointment of Juan Perez, the CIO of tech giant Salesforce, to its Board of Directors signifies Wabtec's intent to drive a digital revolution.
There are also signals of expansion, as evidenced by the approval of Wabtec’s Hybrid Battery-Diesel Work Locomotives for New York Subway System’s maintenance operations and the acquisition of Evident’s Inspection Technologies Division. However, risks linger with predicted lower 2025 profits due to a freight slowdown.
Wabtec WAB News Analytics from Mon, 06 May 2024 07:00:00 GMT to Fri, 14 Feb 2025 14:16:13 GMT - Rating 1 - Innovation -3 - Information 6 - Rumor 7
