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Q1 Earnings Outperformers: Cummins (NYSE:CMI) And The Rest Of The Heavy Transportation Equipment Stocks


Kayode Omotosho /
2024/07/11 7:14 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the heavy transportation equipment industry, including Cummins (NYSE:CMI) and its peers.

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 10 heavy transportation equipment stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.8%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the heavy transportation equipment stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.8% on average since the previous earnings results.

Cummins (NYSE:CMI)

Having produced the first commercially available diesel engine in 1933, Cummins (NYSE:CMI) designs and manufactures engines used in cars, trucks, heavy machinery, and other types of vehicles.

Cummins reported revenues of $8.40 billion, flat year on year, in line with analysts' expectations. It was a weaker quarter for the company with a miss of analysts' Engine revenue estimates.

“We continued to see strong demand from customers in the first quarter of 2024, reflecting the quality and performance of our products,” said Jennifer Rumsey, Chair and CEO.

Cummins Total Revenue

The stock is down 3.8% since reporting and currently trades at $273.13.

Read our full report on Cummins here, it's free.

Best Q1: Wabtec (NYSE:WAB)

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.

Wabtec reported revenues of $2.50 billion, up 13.8% year on year, outperforming analysts' expectations by 4.4%. It was a stunning quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.

Wabtec Total Revenue

Wabtec scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $160.57.

Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Wabash (NYSE:WNC)

Headquartered in Indiana, Wabash National (NYSE:WNC) is a diversified industrial company, mainly producing semi-trailers and liquid transportation systems.

Wabash reported revenues of $515.3 million, down 17% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings and backlog sales estimates.

As expected, the stock is down 20% since the results and currently trades at $20.6.

Read our full analysis of Wabash's results here.

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 $820.2 million, down 21% year on year, falling short of analysts' expectations by 10.9%. Looking more broadly, it was a slower quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.

Greenbrier had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 11.4% since reporting and currently trades at $43.

Read our full, actionable report on Greenbrier here, it's free.

PACCAR (NASDAQ:PCAR)

Founded more than a century ago, PACCAR (NASDAQ:PCAC) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

PACCAR reported revenues of $8.24 billion, up 2.3% year on year, in line with analysts' expectations. Looking more broadly, it was a very strong quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.

The stock is down 10.8% since reporting and currently trades at $101.41.

Read our full, actionable report on PACCAR here, it's free.

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