Wabash National Beats on EPS, but GAAP Results Lag

Wabash National (NYS: WNC) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Wabash National missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share dropped significantly.


Gross margins expanded, operating margins improved, net margins dropped.

Revenue details
Wabash National recorded revenue of $362.4 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $384.5 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $287.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The six earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.03 for Q2 were 40% lower than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.9%, 520 basis points better than the prior-year quarter. Operating margin was 5.7%, 390 basis points better than the prior-year quarter. Net margin was 0.5%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $443.3 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $1.53 billion. The average EPS estimate is $0.98.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 91 members out of 147 rating the stock outperform, and 56 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Wabash National a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wabash National is buy, with an average price target of $14.20.

Over the decades, small-cap stocks like Wabash National have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

The article Wabash National Beats on EPS, but GAAP Results Lag originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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