Wabtec Corporation shares are trading higher after the company reported better-than-expected first-quarter financial results and raised its 2024 guidance.

WAB reported first-quarter fiscal 2024 sales growth of 13.8% year-over-year to $2.497 billion, beating the consensus of $2.397 billion.

Sales growth was driven by higher sales in Freight (+17.2% Y/Y) and Transit (+5.5% Y/Y) segments.

The adjusted gross margin expanded 240 basis points to 32.9%, and the adjusted operating margin was 19.8%, up 340 basis points. 

At the end of the quarter, the total backlog stood at $22.08 billion, down 1.1% Y/Y. 

Adjusted EPS of $1.89 (+47.7.3% Y/Y) topped the consensus of $1.49.

During the quarter, the company returned $211 million to shareholders via share repurchases and dividends. 

Operating cash flow was $334 million versus cash used for operations of $(25) million a year ago. Wabtec held cash and equivalents of $639 million at the end of the quarter. 

“Looking ahead, we continue to see underlying customer demand for our products and solutions. Our orders pipeline and 12-month backlog continue to be strong, which provides visibility for profitable growth ahead. Our team is focused on product innovation, disciplined cost management, and relentless execution for our customers. These factors, coupled with our strong Q1 results, give us confidence to raise our full-year 2024 guidance,” commented Rafael Santana, Wabtec’s President and CEO.

2024 Guidance: Wabtec raised the Adjusted EPS outlook to $7-$7.40 (from $6.50-$6.90) versus consensus of $6.79.

The company sees sales of $10.25 billion-$10.55 billion (prior $10.05 billion -$10.35 billion) versus a consensus of $10.205 billion.

Price Action: WAB shares are trading higher by 6.42% at $158.00 premarket at the last check Wednesday.