Westinghouse Air Brake Technologies Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 4.4% to hit US$2.5b. Westinghouse Air Brake Technologies also reported a statutory profit of US$1.53, which was an impressive 20% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Westinghouse Air Brake Technologies

After the latest results, the twelve analysts covering Westinghouse Air Brake Technologies are now predicting revenues of US$10.3b in 2024. If met, this would reflect a credible 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 20% to US$6.25. Before this earnings report, the analysts had been forecasting revenues of US$10.2b and earnings per share (EPS) of US$5.88 in 2024. So the consensus seems to have become somewhat more optimistic on Westinghouse Air Brake Technologies' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to US$169. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Westinghouse Air Brake Technologies at US$209 per share, while the most bearish prices it at US$133. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Westinghouse Air Brake Technologies' revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2024 being well below the historical 7.4% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.5% per year. Even after the forecast slowdown in growth, it seems obvious that Westinghouse Air Brake Technologies is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Westinghouse Air Brake Technologies following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Westinghouse Air Brake Technologies analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Westinghouse Air Brake Technologies that you should be aware of.

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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.