Wabash National (WNC) Misses Q2 EPS by 8c, Revenues Beat; Offers FY18 EPS Guidance

Wabash National (NYSE: WNC) reported Q2 EPS of $0.49, $0.08 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $612.69 million versus the consensus estimate of $602.32 million.

• Achieved record quarter net sales of $613 million, a 41 percent increase from prior year
• Gross profit and operating income increased 26 percent and 19 percent, respectively, compared to the prior year
• Second quarter GAAP and non-GAAP earnings of $0.54 and $0.49 per diluted share, respectively
• Backlog increased 51 percent to $1.2 billion compared to the prior year
• Company updates full-year 2018 guidance for new trailer shipments of 60,000 to 62,000 trailers and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively

“We are pleased to have delivered a strong performance in the quarter, especially considering the challenging environment we faced, as we continue to execute our strategic plan to profitably grow and diversify,” stated Brent Yeagy, president and chief executive officer. “We achieved a new record for quarterly consolidated revenue at approximately $613 million, which is 13 percent higher than the previous record from the fourth quarter of 2015. This new record is directly attributable to the addition of the Supreme business and our Final Mile Products segment. Needless to say, we continue to believe our Final Mile Products business will help drive future growth for Wabash National. Overall, all three of our reporting segments continue to experience strong demand in most end markets and we expect a stronger second half of 2018.”

Mr. Yeagy continued, “Backlog totaling $1.2 billion as of June 30, 2018, remains seasonally and historically strong, increasing approximately 51 percent when compared to the prior year quarter. Trailer and truck body demand and orders have remained strong for the past several months continuing the trend from the first quarter and supporting our belief in the growing secular demand in e-commerce and home delivery. We continue to take steps to reduce the margin impact of U.S. tariff policy, raw material inflation, supply base disruptions and a very tight labor market on our business in 2018. As a result, we are updating our full-year guidance for 2018 new trailer shipments to 60,000 to 62,000 units and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively. With our focus on people, purpose and performance we will continue to drive ongoing productivity improvements throughout the organization and progress on our strategic initiatives.”

GUIDANCE:

Wabash National sees FY2018 EPS of $1.94-$2.00.

For earnings history and earnings-related data on Wabash National (WNC) click here.

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