Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Westinghouse Air Brake Technologies Corporation (NYSE:WAB) filed its quarterly result this time last week. The early response was not positive, with shares down 6.1% to US$197 in the past week. Revenues came in 2.4% below expectations, at US$2.7b. Statutory earnings per share were relatively better off, with a per-share profit of US$1.96 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the ten analysts covering Westinghouse Air Brake Technologies are now predicting revenues of US$11.1b in 2025. If met, this would reflect a satisfactory 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 14% to US$7.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$11.0b and earnings per share (EPS) of US$7.56 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Westinghouse Air Brake Technologies

The analysts reconfirmed their price target of US$229, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Westinghouse Air Brake Technologies, with the most bullish analyst valuing it at US$250 and the most bearish at US$204 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Westinghouse Air Brake Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that Westinghouse Air Brake Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Westinghouse Air Brake Technologies is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Westinghouse Air Brake Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Westinghouse Air Brake Technologies going out to 2027, and you can see them free on our 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.