Can Wabtec (WAB) Tide Over High-Cost Hurdle In Q1 Earnings?
Zacks Investment Research | Apr 22, 2019 10:32PM ET
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (NYSE:WAB) , is scheduled to report first-quarter 2019 results on Apr 25, before the market opens.
Last reported quarter, the company witnessed a negative surprise of 4.9%. However, the bottom line improved on a year-over-year basis. Also, total sales outpaced the Zacks Consensus Estimate and increased year over year as well.
Wabtec is likely to suffer a similar fate in the first quarter as well with the Zacks Consensus Estimate for earnings being revised 22.3% downward in the last 60 days.
Factors at Play
Wabtec’s high operating expenses are likely to hamper its bottom-line growth in the first quarter. Although the company’s merger completion with GE Transportation is a huge positive, it is worth noting that the same will push expenses further due to integration costs. Also, steep operating costs might lead to deterioration in operating ratio (operating expenses as a percentage of revenues), a key measure of efficiency.
Shares of the company underperformed its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.