Shares Of Wabtec Leap On 1Q Surprise, '09 Forecast

For 2009, the company continues to expect a profit between $2.45 and $2.75. Analysts currently predict $2.46 per share.

Wabtec plans to continue to cut costs to offset further freight demand weakness this year.

In a note to clients Wednesday, KeyBanc Capital Markets analyst Steve Barger raised his rating on Wabtec to "Buy" from "Hold," calling the first-quarter results "impressive" in the face of "what could be the worst freight railcar delivery environment since the early 2000s."

Barger noted that Wabtec was also able to grow its margins beyond his expectations.

He also raised his earnings estimates for this year and next.

"In our view, Wabtec is a company investors should want to own at these valuations," he said. "...With management's reiteration of its guidance, we are inclined to believe this performance could be repeatable."