Westinghouse Air Brake Technologies Corporation (NYSE:WAB) (Wabtec) shares are trading higher after the company reported beat-and-raise third-quarter FY23 results.
WAB reported sales growth of 22.5% Y/Y to $2.55 billion, beating the consensus of $2.40 billion.
Sales growth was driven by significantly higher Freight segment sales (+23.4%) and increased Transit segment sales (+20%).
Adjusted gross margin expanded 10 basis points to 31.5%, and the adjusted operating margin was 17.9%, up 150 basis points.
At the end of the quarter, the total backlog stood at $21.48 billion, down 5% Y/Y.
Adjusted EPS of $1.70 (+39.3% Y/Y) topped the consensus of $1.46.
At the end of the quarter, the company had cash and equivalents of $392 million and total debt of $4.05 billion. At September 30, 2023, the company’s total available liquidity was $1.86 billion,
“Looking forward, we are confident that the breadth of our products and technologies combined with our ability to maintain resiliency during economic uncertainty will provide us with a solid foundation for growth and continued momentum as we close out this year and move into 2024. These factors, among others, give us confidence to raise our full-year 2023 guidance. Wabtec is well-positioned to continue driving profitable growth and maximizing shareholder value,” said Wabtec’s President and CEO Rafael Santana.
FY23 Guidance: Wabtec raised the 2023 Adjusted EPS outlook to $5.80-$6.00 versus the $5.71 estimate (Prior View: $5.50-$5.80.).
The company sees sales of $9.5 billion-$9.7 billion vs $9.45 billion estimate (Prior View: $9.25 billion-$9.50 billion).
Price Action: WAB shares are trading higher by 3.96% at $103.90 in the premarket session on Wednesday.
