Westinghouse Air Brake Technologies Corporation (NYSE:WAB) (Wabtec) shares are trading higher after the company reported beat-and-raise third-quarter FY23 results.

Sales growth was driven by significantly higher Freight segment sales (+23.4%) and increased Transit segment sales (+20%). 

Adjusted gross margin expanded 10 basis points to 31.5%, and the adjusted operating margin was 17.9%, up 150 basis points. 

At the end of the quarter, the total backlog stood at $21.48 billion, down 5% Y/Y. 

Adjusted EPS of $1.70 (+39.3% Y/Y) topped the consensus of $1.46.

At the end of the quarter, the company had cash and equivalents of $392 million and total debt of $4.05 billion. At September 30, 2023, the company's total available liquidity was $1.86 billion,

The company sees sales of $9.5 billion-$9.7 billion vs $9.45 billion estimate (Prior View: $9.25 billion-$9.50 billion).

Price Action: WAB shares are trading higher by 3.96% at $103.90 in the premarket session on Wednesday.