The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Greenbrier (NYSE: GBX) and the rest of the heavy transportation equipment stocks fared in Q4.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.2% since the latest earnings results.
Greenbrier (NYSE: GBX)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $875.9 million, up 8.3% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Greenbrier scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 11% since reporting and currently trades at $53.85.
Is now the time to buy Greenbrier? Access our full analysis of the earnings results here, it’s free.
Best Q4: REV Group (NYSE: REVG)
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 17.1% since reporting. It currently trades at $31.95.
Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Wabtec (NYSE: WAB)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.58 billion, up 2.3% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 9% since the results and currently trades at $189.20.
Read our full analysis of Wabtec’s results here.
Cummins (NYSE: CMI)
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE: CMI) offers engines and power systems.
Cummins reported revenues of $8.45 billion, down 1.1% year on year. This number surpassed analysts’ expectations by 4.7%. It was a stunning quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Engine revenue estimates.
The stock is down 5.4% since reporting and currently trades at $329.32.
Read our full, actionable report on Cummins here, it’s free.
Allison Transmission (NYSE: ALSN)
Helping build race cars at one point, Allison Transmission (NYSE: ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $796 million, up 2.7% year on year. This result beat analysts’ expectations by 1.4%. However, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations.
Allison Transmission had the weakest full-year guidance update among its peers. The stock is down 12.3% since reporting and currently trades at $100.20.
Read our full, actionable report on Allison Transmission here, it’s free.
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