Sterne Agee: Wabash National Reports 4Q11 EPS Ahead of Consensus
According to a research report released earlier today, Sterne Agee is reaffirming its Buy rating on Wabash National Corporation (NYSE: WNC) after it reported a 4Q11 EPS of $0.11, $0.02 ahead of consensus.
In the report, Sterne Agee commented, “Revenues of $342 million grew by 42% on a 32% increase in manufacturing production and a doubling of production in WNC's retail division. Furthermore, the company's share of 4Q sales was about 25% of industry sales, well above the historical level of 21%. Even more encouraging was WNC's 6.0% gross margins, an improvement from the 4.0% in 3Q11, and well on its way toward the 9% levels we expect to see during 2012. Bottom line earnings would have been stronger, closer to $0.12, but the annual adjustment to warranty expense (better than expected experience) was $800k less than last year on higher units. All in all, a solid 4Q performance.”
Sterne Agee maintains its $16 PT on Wabash National, which closed yesterday at $10.45.
