Analysts Are Updating Their Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Estimates After Its Full-Year Results

Simply Wall St.
15 Feb

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to US$188 in the week after its latest full-year results. Revenues of US$10b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$6.04, missing estimates by 3.9%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Westinghouse Air Brake Technologies

NYSE:WAB Earnings and Revenue Growth February 15th 2025

After the latest results, the ten analysts covering Westinghouse Air Brake Technologies are now predicting revenues of US$11.0b in 2025. If met, this would reflect a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 25% to US$7.71. In the lead-up to this report, the analysts had been modelling revenues of US$11.0b and earnings per share (EPS) of US$7.78 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$215, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Westinghouse Air Brake Technologies at US$240 per share, while the most bearish prices it at US$182. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Westinghouse Air Brake Technologies'historical trends, as the 6.0% annualised revenue growth to the end of 2025 is roughly in line with the 6.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.5% per year. So although Westinghouse Air Brake Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Westinghouse Air Brake Technologies going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Westinghouse Air Brake Technologies' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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