Wabash National Misses 3Q Expectations

Sterne Agee has published a research report on Wabash National Corporation (NYSE: WNC) after the company reported 3Q earnings that missed expectations by $0.09.

In the report, Sterne Agee writes "WNC reported a 3Q10 loss from cont. ops. of $0.09 (excluding warrant gain), below our estimate of a $0.01 profit and the Street's $0.02 loss. The culprit was that WNC does not count revenues until customers pick up their trailers, and we believe that there were 1,300-1,500 trailers produced but not picked up, based on the 50% surge in inventories, and the higher than normal ratio of expenses to revenue. By our accounts, this represents deferred revenue and profits the company is likely to recognize in 4Q. Management appears to be confident that these trailers will be shipped in 4Q as WNC is maintaining full-year shipment guidance at 23,000-25,000 units. The guidance implies 4Q shipments of 8,000-10,000, which exceeds our 7,650 estimate."

Sterne Agee maintains its Buy rating and $15 price target.

Wabash National Corporation closed yesterday at $8.21.