How does WAB's 2024 EPS trend affect long-term investors?

**Wabtec Corporation's (WAB) 2024 EPS trend presents a mixed outlook for long-term investors.** Here's an analysis of the key points: 1. **Immediate Impact on EPS**: The acquisition of Bloom Engineering is expected to be immediately accretive to Wabtec's EPS, excluding transaction costs. This suggests that the EPS trend for 2024 could be positively influenced by this acquisition, potentially leading to higher EPS figures. 2. **Long-term Growth Prospects**: Wabtec has a history of EPS growth, with a compound annual growth rate (CAGR) of 36% over three years. This indicates a strong track record of profitability and suggests that if the company continues on this path, long-term investors could benefit from increasing EPS in the future. 3. **Market Position and Growth**: Wabtec's dominant position in the railroad industry and its consistent performance in meeting industry demands are positive indicators for long-term investors. The company's growth in revenue and EBIT margins also support the idea that it is moving in a positive direction financially. 4. **Analyst Ratings and Price Targets**: The stock has a "Moderate Buy" consensus rating from analysts, with an average price target that suggests potential upside from the current price. This could be a positive signal for long-term investors looking for growth potential. 5. **Challenges and Considerations**: However, it's important to note that the acquisition of Bloom Engineering involves a significant cash outlay, and integration challenges can sometimes impact financial performance. Additionally, the recent drop in EPS estimates by Zacks Research from $1.75 to $1.73 for Q4 2024 suggests that there may be short-term fluctuations in earnings that long-term investors should be aware of. In conclusion, while the immediate impact of the Bloom Engineering acquisition and the company's historical EPS growth are positive for long-term investors, it's crucial to monitor the integration process and any potential short-term fluctuations in EPS. The overall growth prospects and market position of Wabtec remain strong, making it a potentially attractive investment for those with a long-term perspective.