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  • Professor Andrea M. Armani, University of Southern California
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Spotting Winners: Wabtec (NYSE:WAB) And Heavy Transportation Equipment Stocks In Q4

WAB Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how heavy transportation equipment stocks fared in Q4, starting with Wabtec (NYSE: WAB).

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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15% since the latest earnings results.

Weakest Q4: 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 $2.58 billion, up 2.3% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA estimates.

“The Wabtec team delivered a strong 2024 as evidenced by higher orders, sales, margin expansion, increased earnings and robust cash flow,” said Rafael Santana, Wabtec’s President and CEO.

Wabtec Total Revenue

The stock is down 12% since reporting and currently trades at $183.04.

Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it’s free.

Best Q4: REV Group (NYSE: REVG)

Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.

REV Group reported revenues of $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

REV Group Total Revenue

The market seems happy with the results as the stock is up 16.1% since reporting. It currently trades at $31.66.

Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free.

Wabash (NYSE: WNC)

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 $416.8 million, down 30.1% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.

Wabash delivered the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 29.3% since the results and currently trades at $11.05.

Read our full analysis of Wabash’s results here.

PACCAR (NASDAQ: PCAR)

Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

PACCAR reported revenues of $7.36 billion, down 14.3% year on year. This number lagged analysts' expectations by 1.3%. It was a slower quarter as it also produced a miss of analysts’ EPS estimates.

The stock is down 11% since reporting and currently trades at $97.81.

Read our full, actionable report on PACCAR here, it’s free.

Federal Signal (NYSE: FSS)

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE: FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Federal Signal reported revenues of $472 million, up 5.3% year on year. This result missed analysts’ expectations by 2.4%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ backlog estimates.

The stock is down 17.4% since reporting and currently trades at $74.99.

Read our full, actionable report on Federal Signal here, it’s free.


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