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This Railroad-Equipment Maker’s Stock Is the S&P 500’s Worst Performer. Blame Earnings. - Barron's

1. Wabtec's shares dropped 11% following disappointing earnings results. 2. Adjusted earnings of $1.68 missed expectations of $1.73 per share. 3. Sales of $2.58 billion fell short of the $2.62 billion estimate. 4. 2025 guidance projects lower sales and earnings than analysts anticipated. 5. Board raised the dividend by 25% and authorized $1 billion in buybacks.

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FAQ

Why Very Bearish?

Wabtec significantly missed both earnings and sales forecasts, causing substantial decline. Previous similar earnings misses often led to heightened sell-offs.

How important is it?

Disappointing earnings reports can severely impact stock valuation and investor confidence. The dividend increase may provide some offset, but guidance remains weak.

Why Short Term?

Market sentiment will likely remain negative in the immediate future. Earnings misses typically result in quick sell-offs.

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