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Sep 30, 2021
Wabtec Q3 2021 Earnings Report
Reported strong results with adjusted earnings per share up 20.0% and achieved $250 million of run-rate synergies one year earlier than forecasted.
Key Takeaways
Wabtec Corporation reported a 2.2% increase in sales to $1.91 billion. GAAP earnings per share increased by 3.0% to $0.69, while adjusted earnings per share rose by 20.0% to $1.14. The company generated $244 million in cash from operations and repurchased 2.3 million shares for $199 million.
Third Quarter Reported GAAP Earnings Per Share of $0.69; Adjusted Earnings Per Share Up 20.0% to $1.14
Sales Growth of 2.2% to $1.91 Billion; GAAP Operating Margin of 11.4%; Adjusted Operating Margin +130 bps to 17.0%
Year-to-Date Cash Flow from Operations up 66% to $759 Million; 103% Year-to-Date Cash Conversion
Achieved $250 Million of Run-Rate Synergies One Year Earlier Than Forecasted
Revenue by Segment
Forward Guidance
Wabtec tightened its 2021 sales guidance to a range of $7.90 billion to $8.05 billion, GAAP earnings per diluted share guidance to between $2.87 to $2.97 and adjusted earnings per diluted share to between $4.20 to $4.30. Wabtec expects strong cash flow generation with operating cash flow of about $1 billion for full year 2021.
Positive Outlook
- Tightened 2021 sales guidance to a range of $7.90 billion to $8.05 billion
- GAAP earnings per diluted share guidance to between $2.87 to $2.97
- Adjusted earnings per diluted share to between $4.20 to $4.30
- Expects strong cash flow generation
- Operating cash flow of about $1 billion for full year 2021
Challenges Ahead
- Expects higher commodity costs
- Expects shortages of components
- Expects chip shortages
- Expects labor shortages
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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