Wabash National (WNC) Reports In-Line Q3 EPS, Revenues Beat; Offers FY18 EPS Mid-Point Outlook Above Consensus

Wabash National (NYSE: WNC) reported Q3 EPS of $0.29, in-line with the analyst estimate of $0.29. Revenue for the quarter came in at $553 million versus the consensus estimate of $552.1 million.

“The third quarter was a difficult quarter for the Company as a whole,” explained Brent Yeagy, president and chief executive officer. “All three of our reporting segments faced increasing operating pressures which negatively impacted our financial results. Net sales and operating performance metrics were negatively impacted in the quarter by the strong freight demand market impacting shipments and availability of chassis and other components, as well as a higher commodity cost environment and the continued tight labor market in many of the locations we operate. Despite these tough operating environments, we generated quarterly net sales of $553 million, which is 30 percent higher than the previous year and represents the second highest top-line performance in the Company’s 33-year history. The year-over-year growth is primarily attributable to the addition of Supreme and strong market demand in all three segments.”

Mr. Yeagy continued, “Overall, the continued strong market demand has driven our backlog to a new record level of $1.3 billion, an increase of 80 percent compared to the prior year quarter. Trailer and truck body demand has remained strong continuing the trend from the previous quarters 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 for the remainder of 2018 and into 2019. Looking forward, we expect sequential improvement in the fourth quarter operating results as we manage the various challenges impacting our business, and as the core trailer business expects stronger pricing and a more favorable sales mix. As a result, we are maintaining our full-year guidance for 2018 new trailer shipments to 60,000 to 62,000 units and GAAP and non-GAAP earnings of $1.41 to $1.46 per diluted share and $1.50 to $1.55 per diluted share, respectively.”

GUIDANCE:

Wabash National sees FY2018 EPS of $1.50-$1.55, versus the consensus of $1.50.

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

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