Westinghouse Air Brake Technologies Posts Mixed Results, Full-Year Guidance
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Westinghouse Air Brake Technologies Corporation on Tuesday posted mixed earnings results and an equally mixed full-year guide. WAB's results were driven by strong demand for its products, particularly in North America.
However, the company's bottom line was hurt by higher costs, including raw materials and freight. Overall, WAB's results were a mixed bag. The company posted strong revenue growth, but its bottom line was hurt by higher costs. Looking ahead, the company's guidance is below analysts' expectations.
Earnings
Westinghouse Air Brake Technologies reported mixed results for its fiscal year 2022 second quarter ended June 30, with a 1.7% increase in total revenue but a 14.0% increase in net income. The company's total revenue for the quarter was $7955.0 million, up from $7556.0 million in the same period last year.
Market Price
The company also issued full-year guidance that was below analyst estimates. Despite the mixed results, shares of WAB were up slightly in Tuesday trading, as investors appeared to be encouraged by the company's top-line growth.
VI Analysis
The company's products are used in a variety of applications, including passenger and freight rail, mining, and industrial uses. WAB's fundamentals reflect its long-term potential. The company has a strong financial position, with plenty of cash on hand and low debt levels. It also has a history of strong profitability and cash flow generation. However, the stock is currently overvalued, trading at around 14% above its intrinsic value of $82.4 per share. This is likely due to the company's strong performance in recent years, as well as the growing demand for its products in the transportation sector.
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Summary
WABT is a leading global provider of air brake systems and components for the railroad industry. WABT's products are used on freight and passenger trains around the world and the company has a strong global customer base. WABT is headquartered in the United States and has manufacturing facilities in the United States, Canada, Mexico, and China.
Investors may be attracted to WABT because of its strong market position, history of innovation, and global reach. The company is well-positioned to benefit from continued growth in the railroad industry.