Heavy Transportation Equipment Stocks Q3 Results: Benchmarking Wabash (NYSE:WNC)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Wabash (NYSE:WNC) and the rest of the heavy transportation equipment stocks fared in Q3.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.2%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Wabash (NYSE:WNC)
With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $464 million, down 26.7% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"During the third quarter, our GAAP EPS was $(7.53), primarily as a result of taking a $450 million non-cash charge as the result of a legal verdict, while non-GAAP adjusted EPS was $0.19," said Brent Yeagy, president and chief executive officer.
Wabash Total Revenue
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $17.12.
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.46 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Cummins Total Revenue
The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $358.84.
Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
Commercial Vehicle Group reported revenues of $171.8 million, down 30.4% year on year, falling short of analysts’ expectations by 22.6%. It was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations significantly.
Commercial Vehicle Group delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 32.1% since the results and currently trades at $2.09.
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $1.05 billion, up 3.5% year on year. This number was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ sales volume estimates.
The stock is up 22% since reporting and currently trades at $62.78.
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $7.70 billion, down 6.4% year on year. This result topped analysts’ expectations by 1.4%. It was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ adjusted operating income estimates.
The stock is down 4.7% since reporting and currently trades at $104.42.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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