Wabtec (NYSE: WAB) reported Q4 EPS of $0.97, $0.05 worse than the analyst estimate of $1.02. Revenue for the quarter came in at $1.1 million versus the consensus estimate of $1.1 million.

2019 Financial Guidance and Pro Forma Financial Information
Wabtec’s GAAP financial guidance for 2019 is: Sales of about $8.4 billion, income from operations of about $900 million and earnings per diluted share of between $3.00-$3.20. Wabtec’s guidance for EBITDA, which Wabtec defines as income from operations plus depreciation and amortization, is about $1.3 billion.

Wabtec’s adjusted financial guidance for 2019 is: Sales of about $8.4 billion, adjusted EBITDA of about $1.6 billion, adjusted income from operations of about $1.2 billion and adjusted earnings per diluted share of between $4.00-$4.20. The adjusted guidance excludes estimated expenses for the GE Transportation merger for one-time transaction costs, one-time purchase price accounting charges, and non-cash accounting policy harmonization. Excluding these expenses, the company’s adjusted operating margin target for the full year is about 14 percent and its effective tax rate for the full year is expected to be about 24 percent. For the year, Wabtec expects adjusted cash flow from operations to exceed adjusted net income.

Following is pro forma financial information assuming a full year of GE Transportation’s results and excluding estimated expenses for the GE Transportation merger for one-time transaction costs, all purchase price accounting charges and non-cash accounting policy harmonization: Sales of about $9.2 billion, adjusted EBITDA of about $1.7 billion and adjusted income from operations of about $1.4 billion.

For earnings history and earnings-related data on Wabtec (WAB) click here.