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Wabash (WNC) to Report Q1 Earnings: Here's What to Expect

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Wabash National (WNC - Free Report) is slated to release first-quarter 2023 results on Apr 26, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 44 cents and $621 million, respectively.

For the first quarter, the consensus estimate for Wabash’s earnings per share has moved up by a penny in the past 90 days. Its bottom-line estimates imply growth of 83.33% from the year-ago reported number. The Zacks Consensus Estimate for Wabash’s quarterly revenues also suggests a 13.58% year-over-year increase. Over the trailing four quarters, Wabash surpassed earnings estimates on three out of four occasions and missed in one, the average surprise being 46.06%.

Q4 Highlights

In fourth-quarter 2022, Wabash’s adjusted earnings per share of 84 cents surpassed the consensus mark of 71 cents. Also, the bottom line rose 265% year over year. The company reported net sales of $657.4 million, missing the Zacks Consensus Estimate of $662 million, but the top line rose 37% from the year-ago level.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for the trailer manufacturer in first-quarter 2023, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Wabash has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is equal to the Zacks Consensus Estimate.

Zacks Rank: It currently carries a Zacks Rank #2.

Factors at Play

Wabash has signed a multi-year supply agreement with J.B. Hunt, a supply chain solutions provider in North America. This strategic agreement will help the original equipment manufacturer meet pent-up demand as its additional dry van capacity comes online in early 2023. Also, Wabash has signed a 10-year agreement with Ryerson to source steel, stainless steel and aluminum products used across its full portfolio. These deals are likely to have a positive impact on the upcoming results.

However, Wabash is struggling with semiconductor shortages, a by-product of COVID-19 that only worsened with the Russia-Ukraine war. The deficit of microchips is hindering the business operations of industry participants and the chip crunch is not likely to end anytime soon, resulting in lost revenues.

While a strong order backlog, the long-term agreement with J.B. Hunt & Ryerson and robust equipment demand strengthen the prospects for Wabash, high freight rates and ongoing supply chain issues remain a constraint. Also, Wabash is planning to increase capital expenditure over the next couple of years to underpin its longer-term prospects, which is likely to hinder the result of the to-be-reported quarter.

Stocks With the Favorable Combination

Let’s take a look at some players in the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:

Lear (LEA - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +4% and a Zacks Rank #3.

The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.50 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in fiscal year 2022, the average surprise being 17.12%.

Mobileye Global Inc. (MBLY - Free Report) will release first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.

The company has an Earnings ESP of +11.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh (OSK - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3.

The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $2.09 billion, respectively. OSK surpassed earnings estimates in one out of the trailing four quarters in fiscal year 2022 while missing in the remaining three, the average negative surprise being 8.82%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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