Wabtec (NYSE: WAB) reported Q1 EPS of $0.89, $0.03 better than the analyst estimate of $0.86. Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.85 billion.

• Delivered Strong Cash Flow from Operations of $292 Million
• First Quarter Reported GAAP Earnings Per Share of $0.59; Adjusted EPS of $0.89
• Converted Key Long-term Orders, Strengthening Book-to-Bill
• Expanded Into Global Maintenance of Way Market with Strategic Acquisition of Nordco
• On-track to Deliver $250 Million Run-Rate of Synergies From GE Transportation Merger in 2021

“Wabtec had a strong operational quarter,” said Rafael Santana, Wabtec’s president and chief executive officer. “Our team continued to deliver for our customers, while driving significant cash generation and aggressively reducing costs. This solid execution, balanced with investments in high-return opportunities, like our recent strategic acquisition of Nordco, will continue to create value and drive strong returns for shareholders.

“We are seeing continued signs of recovery happening across the global Freight and Transit rail markets. Freight volumes and equipment utilization are gradually improving, demand for freight aftermarket services is increasing, and sustainable investment in global transit remains strong. These directional trends, along with our backlog, strong cash flow and order pipeline position Wabtec to deliver profitable long-term growth.”

GUIDANCE:

Wabtec sees FY2021 EPS of $4.05-$4.30, versus the consensus of $4.14. Wabtec sees FY2021 revenue of $7.7-7.9 billion, versus the consensus of $7.82 billion.

• Wabtec updated its 2021 sales guidance to a range of $7.7 billion to $7.9 billion, GAAP earnings per diluted share guidance to between $2.80 to $3.05 and adjusted earnings per diluted share to between $4.05 to $4.30. The adjusted guidance excludes estimated expenses for restructuring and amortization expenses.
• With cost actions and synergies stemming from the Wabtec and GE Transportation merger on-track, we expect to achieve a run rate savings of $250 million in 2021 as well as margin expansion through continued cost actions. For full year 2021, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90%.

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