# my 1st post here

Hello,
I 1st want to thank Saul and others who post here and educate us all. i happened on this board about 3 months ago and trying to read up all the posts. still a way to go.

I decided to do the 2 yrs worth of revenue and earnings and TTME on wabtec.

I got earnings results that were different from what I read on wabtec board by Saul.
I finally figured out the difference in earnings were due to the 2:1 split in May 2013 ( Just took 3 hrs)

I am struggling how to account for this going forward.
For example
mar2013 earnings 1.44
mar 2014 earnings 0.83

this is not an increase though in their report they say it is
â€śWabtec Reports Record Quarterly Sales and Earnings; 1Q EPS of 83 Cents, Up 15 Percent.â€ť
Do i have to double the earnings to 1.66.
do i do this going forward all the time?
thanks
Hope I am making sense with my question
usha
ps
saul, one of your criteria for a stock to select is a revenue growth of 25%. WAb does not have this. can you explain your reasoning?
thanks

3 Likes

this is not an increase though in their report they say it is
â€śWabtec Reports Record Quarterly Sales and Earnings; 1Q EPS of 83 Cents, Up 15 Percent.â€ť Do i have to double the earnings to 1.66.

ushats,

Actually, what you want to do in this instance is essentially the opposite which is divide the pre-split earnings by 2. After a stock split, Wabtecâ€™s management will calculate new earnings using post-split shares but they wonâ€™t go back and re-calculate old EPS to account for the split. So their earnings are as follows:

Mar 2013 = 1.44/2 = .72
Mar 2014 = .83

.83-.72 / .72 = 15.3%

Hope this helps.

Jason
Long WAB

2 Likes

saul, one of your criteria for a stock to select is a revenue growth of 25%. WAb does not have this. can you explain your reasoning?

Usha, I made an exception for WAB because they are such a reliable company. They have an extraordinary record, being the only company on any US exchange whose stock price has been up for each of the last 13 (or 14, I forget) years. That includes the â€śGreat Recessionâ€ť of 2008 as well as the 9/11 sell-off year. Seems like a very well run company. I just added some myself.

Saul

Thanks, that does help. I will continue to track and get a handle on this
usha