Yahoo Finanza Wabash National Corp (WNC) (Q1 2024) Earnings Call Transcript Highlights: Solid Performance and ...
Revenue: Q1 2024 revenue was $515 million.
Net Income: Q1 2024 net income was $18.2 million.
Earnings Per Share (EPS): Q1 2024 EPS was $0.39 per diluted share.
Gross Margin: 14.8% of sales in Q1 2024.
Operating Margin: 5.7% in Q1 2024.
Operating EBITDA: $46 million, or 8.8% of sales in Q1 2024.
Backlog: $1.8 billion at the end of Q1 2024, with $1.5 billion expected to ship within the next 12 months.
2024 Revenue Guidance: Reiterated at $2.2 billion to $2.4 billion, with a midpoint of $2.3 billion.
2024 EPS Guidance: Projected to be between $2.00 and $2.50, with a midpoint of $2.25.
Dealer Locations: Network includes 78 dealer locations.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you clarify if the pickup and logistical issues experienced in Q1 were specific to Wabash or an industry-wide phenomenon? A: Brent Yeagy, President and COO of Wabash National Corp, explained that the pickup issues are a normal occurrence across the industry, especially during the first quarter and in a down year for dry vans. This is a customary challenge that the industry expects during such periods.
Q: How should we model the impact of the Trailer as a Service on financials, particularly regarding the 1,000 units mentioned? A: Michael Pettit, CFO of Wabash National Corp, stated that from a P&L perspective, the Trailer as a Service would appear as a lease-type expense, showing monthly revenue and associated expenses. In the cash flow statement, it will be listed separately under revenue-generating assets, distinct from normal plant property and equipment.
Q: What improvements in the market are necessary for an increase in orders from current levels? A: Brent Yeagy noted that necessary market improvements are already occurring, such as increased manufacturing activity and capacity reductions in the transportation industry. These changes are setting the stage for a market upswing expected to continue into 2025.
Q: Can you provide insights into the expected quarterly cadence of trailer shipments and operating margins for the rest of the year? A: Michael Pettit indicated that revenue and EPS are expected to increase moderately in the latter half of the year following a significant jump from Q1 to Q2. This increase aligns with the resolution of delayed pickups from Q1. Operating margins are expected to improve sequentially alongside volume increases and strong performance in parts and services.
Q: What are the growth expectations for the truck body and tank trailer segments in 2024? A: Michael Pettit expects year-over-year growth in the truck body segment and a smaller decline in the tank trailer segment compared to dry vans. These segments are seen as less cyclical and more resilient, contributing to stable earnings.
Q: How will the trailers as a service be accounted for in financial reporting? A: Brent Yeagy clarified that revenue from trailers as a service would be reported as lease revenue, reflecting the duration the units are in service. The associated capital expenditure will appear as a revenue-generating asset in the cash flow statement, categorized under parts and service.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
