Wabash National Shows Improvement During 4Q, Sterne Agee Maintains Buy

Sterne Agee has published a research report on Wabash National Corporation (NYSE: WNC) after the company reported 4Q earnings that showed signs of improvement and positive outlook in 2011, for now.

In the report, Sterne Agee writes "WNC reported 4Q10 EPS of $0.07 versus our estimate of $0.03 and consensus of $0.01. Excluding a benefit from lower-than-expected warranty accruals, “Apples-to-Apples” EPS was $0.03, still above consensus. Gross margin (excluding the warrant benefit) was 6% vs. -2.2% last year (40 bps below our expectation). Gross Margins have been improving throughout the year (-1.2% in 1Q, +3.5% in 2Q, +3.8% in 4Q). We believe the Company can generate $100-125m of cash over the next two years combined. We believe WNC will eventually participate in more shareholder-friendly actions, including reinitiating a dividend and/or repurchasing shares, and this should be incorporated into a total return investment horizon."

Sterne Agee maintains its Buy rating and $16 price target.

Wabash National Corporation closed yesterday at $11.60