Wabash National Earnings: Here’s Why Investors are Excited Now

Wabash National Corp. (NYSE:WNC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.12%.

Wabash National Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.7% to $0.21 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 13.99% to $413.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wabash National Corp. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.19. It missed the average revenue estimate of $413.57 million.

Quoting Management: Dick Giromini, president and chief executive officer, stated, “We are very pleased to report such a strong second quarter. Our results were driven by the broad-based execution of our long-term strategy to transform Wabash National into a diversified manufacturer, while implementing operational improvements throughout the business and enhancing our long-term margin and growth profile through the integration of strategic acquisitions. The benefits of our diversification initiatives are evident in our second quarter results including a more balanced contribution from each of our segments to both our top-line and bottom-line. In particular, our composite products exceeded our expectations and recorded the strongest quarter in its history. We maintained the momentum generated during 2012 and followed the first quarter with solid growth during the second quarter, and based on current order rates and industry indicators, we expect continued strong performance in the second half of the year.”

Key Stats (on next page)…

Revenue increased 27.41% from $324.23 million in the previous quarter. EPS increased 133.33% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.26 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $0.81 to a profit of $0.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)