Stock Monitor: USD Partners Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 02, 2018 / Active-Investors.com has just released a free earnings report on Westinghouse Air Brake Technologies Corp. (NYSE: WAB) ("Wabtec"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=WAB. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 20, 2018. The maker of parts for locomotives, subways, and buses generated its highest cash from operations in FY17, and ended the year with a record backlog. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for USD Partners LP (NYSE: USDP), which also belongs to the Services sector as the Company Westinghouse Air Brake Technologies. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=USDP
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Westinghouse Air Brake Technologies most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=WAB
Earnings Highlights and Summary
Wabtec's sales surged 42% to $1.08 billion in Q4 2017 compared to $759.98 million in Q4 2016. The increase was driven by sales from acquisitions of $219 million; an organic sales growth of $80 million; and a benefit from changes in foreign currency exchange rates of $17 million. The Company's revenue numbers topped analysts' estimates by $30 million.
During Q4 2017, Wabtec's income from operations was $91.16 million, including expenses of $24 million for contract adjustments to reflect the higher-than-expected costs to complete certain contracts, and $18 million for restructuring and integration actions. The Company had reported an income from operations of $62.80 million in Q4 2016.
In Q4 2017, Wabtec recorded a repatriation tax expense of $55 million, and a benefit of $47 million from a reduction in deferred tax liabilities from the US tax reform bill that was enacted in December 2017. This resulted in a net expense from the US tax reform of $8 million in Q4 2017.
For Q4 2017, Wabtec reported earnings of $48.95 million, or $0. 51 per diluted share, compared to $37.81 million, or $0.42 per diluted share in Q4 2016. The Company's reported quarter results included expenses of $0.18 per diluted share for contract adjustments; expenses of $0.13 per diluted share for the restructuring and integration actions; and expenses of $0.08 per diluted share for the impact of the US tax reform. On an adjusted basis, Wabtec recorded earnings of $0.90 per diluted share, which were in-line with market estimates of $0.90 per share.
For the full year FY17, Wabtec's sales surged 32% to $3.88 billion compared to $2.93 billion in FY16. The sales increase was driven by sales from acquisitions of $1.18 billion, which more than offset a decrease in organic sales of $227 million and a decrease of $5 million from changes in foreign currency exchange rates.
For FY17, Wabtec reported a net income of $262.26 million, or $2.72 per share, compared to $304.89 million, or $3.34 per diluted share, in FY16. On an adjusted basis, the Company's earnings were $3.43 per diluted share in FY17.
Segment Results
During Q4 2017, Wabtec's Transit segment's sales soared 70% to $711.91 million on a y-o-y basis compared to $418.62 million in Q4 2016, driven by sales from acquisitions of $192 million; an organic sales growth of $88 million; and a benefit from changes in foreign currency exchange rates of $13 million. The segment's income from operations advanced 41% to $32.65 million on a y-o-y basis, and included expenses for contract adjustments and restructuring & integration of $35 million. Excluding these expenses, the segment's adjusted income from operations increased 191% on a y-o-y basis.
For Q4 2017, Wabtec's Freight segment's sales grew 7% to $363.63 million compared to $341.36 million in Q4 2016. The sales increase was driven by sales from acquisitions of $27 million, and a benefit from changes in foreign currency exchange rates of $4 million. The segment's income from operations totaled $68.28 million, and included expenses for contract adjustments and restructuring & integration of $6 million. Excluding these expenses, the segment's adjusted income from operations increased 11% on a y-o-y basis.
Cash Matters and Backlog
During Q4 2017, Wabtec's cash from operations was $162 million, the highest quarter of the year 2017, due in part to a reduction in working capital. At December 31, 2017, the Company had cash of $233 million and debt of $1.87 billion.
During Q4 2017, Wabtec's total, multi-year backlog increased 2% to a record $4.6 billion on a q-o-q basis. The Company's 12-month backlog, a subset of the total, grew 3% to a record $2.31 billion on a q-o-q basis.
Financial Guidance
For FY18, Wabtec is forecasting sales to be about $4.1 billion, and adjusted earnings per diluted share to be about $3.80, excluding expected restructuring and integration charges. The Company's operating margin target is approximately 13.5%, and it expects cash flow from operations to exceed net income for FY18.
For Q1 2018, Wabtec is estimating adjusted earnings per diluted share to be similar to Q4 2017.
Stock Performance Snapshot
March 29, 2018 - At Thursday's closing bell, Westinghouse Air Brake Technologies' stock advanced 1.71%, ending the trading session at $81.40.
Volume traded for the day: 719.39 thousand shares.
Stock performance in the last month - up 0.07%; previous three-month period - up 0.04%; past six-month period - up 7.87%; and last twelve-month period - up 5.96%
After last Thursday's close, Westinghouse Air Brake Technologies' market cap was at $7.69 billion.
Price to Earnings (P/E) ratio was at 26.72.
The stock has a dividend yield of 0.59%.
The stock is part of the Services sector, categorized under the Railroads industry. This sector was up 1.5% at the end of the session.
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