Winners And Losers Of Q3: Wabtec (NYSE:WAB) Vs The Rest Of The Heavy Transportation Equipment Stocks
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the heavy transportation equipment industry, including 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 14 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.2%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Wabtec (NYSE:WAB)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.66 billion, up 4.4% year on year. This print fell short of analysts’ expectations by 0.5%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.
“The Wabtec team delivered another strong quarter, evidenced by continued growth in sales, margin, earnings and operating cash flow,” said Rafael Santana, Wabtec’s President and CEO.
Wabtec Total Revenue
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $191.
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 $8.46 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Cummins Total Revenue
The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $358.98.
With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $464 million, down 26.7% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $17.09.
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 $2.74 billion, up 9.2% year on year. This print topped analysts’ expectations by 2.8%. More broadly, it was a mixed quarter as it also produced full-year revenue guidance slightly topping analysts’ expectations.
Oshkosh scored the highest full-year guidance raise among its peers. The stock is down 14.1% since reporting and currently trades at $92.73.
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $350.2 million, up 15.6% year on year. This result beat analysts’ expectations by 1.8%. It was a very strong quarter as it also produced a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ EBITDA estimates.
Blue Bird pulled off the fastest revenue growth among its peers. The stock is down 6% since reporting and currently trades at $40.50.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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