Let’s dig into the relative performance of Wabash (NYSE: WNC) and its peers as we unravel the now-completed Q1 heavy transportation equipment earnings season.
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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 1.2%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 17.7% on average 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 $380.9 million, down 26.1% year on year. This print fell short of analysts’ expectations by 7.1%. Overall, it was a disappointing quarter for the company with full-year revenue and EPS guidance missing analysts’ expectations significantly.
"During the first quarter, our GAAP EPS was $5.36, primarily as a result of recognizing a $342 million gain in connection with the reduction of a legal verdict," said Brent Yeagy, president and chief executive officer.
Interestingly, the stock is up 2.4% since reporting and currently trades at $10.20.
Read our full report on Wabash here, it’s free.
Best Q1: Douglas Dynamics (NYSE: PLOW)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $115.1 million, up 20.3% year on year, outperforming analysts’ expectations by 6.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 16.7% since reporting. It currently trades at $28.50.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Greenbrier (NYSE: GBX)
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 $762.1 million, down 11.7% year on year, falling short of analysts’ expectations by 15.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Greenbrier delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 2.4% since the results and currently trades at $45.81.
Read our full analysis of Greenbrier’s results here.
Shyft (NASDAQ: SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ: SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $204.6 million, up 3.4% year on year. This result surpassed analysts’ expectations by 2.8%. Overall, it was an incredible quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Shyft delivered the highest full-year guidance raise among its peers. The stock is up 63.8% since reporting and currently trades at $11.94.
Read our full, actionable report on Shyft here, it’s free.
Blue Bird (NASDAQ: BLBD)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $358.9 million, up 3.7% year on year. This number topped analysts’ expectations by 0.6%. It was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
The stock is up 11.4% since reporting and currently trades at $42.
Read our full, actionable report on Blue Bird here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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