Wabash National (NYSE:WNC) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Wabash National Corporation (NYSE:WNC) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of -$0.07/share on revenue of $346.8 million. The consensus earnings per share (EPS) of -$0.07/share is based on a poll of 5 analysts and represents a decline in eps of −114.8% over the same quarter last year, when the company reported earnings of $0.46/share.

The revenue forecast of $346.8 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −40.3%. Last year the company reported $580.9 million in revenue for the quarter.

Expected to report EPS of -$0.07/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $346.84 $580.91 −40.3%
EPS -$0.07 $0.46 −114.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter.

What are your expectations from Wabash National Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.20 $0 100% Beat
Q1, 2020 -$0.03 -$0.04 -53.8% Missed
Q4, 2019 $0.38 $0.34 −10.5% Missed
Q3, 2019 $0.42 $0.46 8.9% Beat
Q2, 2019 $0.48 $0.56 15.5% Beat
Q1, 2019 $0.25 $0.27 9.8% Beat
Q4, 2018 $0.44 $0.38 −13.6% Missed
Q3, 2018 $0.29 $0.29 0% Met

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 29, 2020 $11.60 $12.47 7.5% Increase
May 14, 2020 $7.66 $7.67 0.1% Increase
February 12, 2020 $11.91 $12.63 6.0% Increase
November 6, 2019 $14.92 $15.65 4.9% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.48, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.48 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Wabash National Corporation is currently trading at $14.26/share, down −0.5% for the day. The company is trading at approximately 88.1% of its 52-week high of $16.18/share. The company’s stock price is up 14.4% since the last earnings report and down −3.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 63.10 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:WNC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −11.98 and a forward P/E multiple of −126.37.

Wabash National Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.92. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $14.26
P/E Ratio −12.0x
P/E Ratio (Fwd) −126.4x
PEG Ratio 0.1
Total Debt / Total Capital 38.2%
Levered Free Cash Flow $74.394 million
EV / EBITDA 9.6x

Finbox

Wabash National Corporation is a small-cap stock with a market capitalization of $754.5 million and a total enterprise value of $1.088 billion. The company operates in the Industrials sector and the Machinery industry.

Wabash National Corporation designs, manufactures, and distributes transportation and various industrial products primarily in the United States. The company operates through three segments: Commercial Trailer Products, Diversified Products, and Final Mile Products. The Commercial Trailer Products segment provides dry van trailers; platform trailers; refrigerated trailers; converter dollies, big tire haulers, and steel coil haulers; aftermarket parts and services; and used trailers. The Diversified Products segment offers stainless steel and aluminum liquid and dry bulk tank trailers, and other transport solutions for the dairy, food and beverage, chemical, environmental, petroleum, and refined fuel industries; and parts, and maintenance and repair services for tank trailers and other related equipment. This segment also offers process vessels, and round horizontal and vertical storage silo tanks; containment and isolation systems for the pharmaceutical, chemical, biotech, and nuclear industries; and composite products. The Final Mile Products segment provides van bodies for dry-freight transportation; cutaway van bodies for commercial applications; service bodies; insulated van bodies; stake bodies; and refrigerated and dry freight truck bodies. The company offers its products under the Wabash National, Beall, Benson, Brenner Tank, Bulk Tank International, DuraPlate, Extract Technology, Supreme, Transcraft, Walker Engineered Products, Walker Transpor, DuraPlateHD, ArcticLite, DuraPlate Cell Core, Iner-City, Spartan, Kold King, and DuraPlate AeroSkirt brands. It distributes its product directly, as well as through its retail operations and independent dealers to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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