Heavy Transportation Equipment Stocks Q4 Teardown: Wabash (NYSE:WNC) Vs The Rest

Looking back on heavy transportation equipment stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Wabash (NYSE:WNC) and its peers.

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 11 heavy transportation equipment stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.

Weakest Q4: 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 $321.5 million, down 22.9% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a disappointing quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

“While conditions on the ground are improving for our customers, we have limited visibility into timing, pace and sustainability of the freight market recovery. With that said, the underlying conditions for a strong trailer demand response is growing once the freight market recovery threshold is met and our customers look to recapture profitability and get back to a growth mindset. But for now, our customers continue to defer capital spending decisions, and order patterns remain uneven, reflecting a highly managed near term reality across freight, construction, and industrial end markets.," explained Brent Yeagy, President and Chief Executive Officer.

Wabash delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 9.8% since reporting and currently trades at $10.14.

Read our full report on Wabash here, it’s free.

Best Q4: 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 $184.5 million, up 28.6% year on year, outperforming analysts’ expectations by 8.6%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Douglas Dynamics achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.7% since reporting. It currently trades at $46.78.

Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.

Oshkosh (NYSE:OSK)

Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.

Oshkosh reported revenues of $2.69 billion, up 2.5% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations significantly.

Interestingly, the stock is up 17.7% since the results and currently trades at $172.08.

Read our full analysis of Oshkosh’s results here.

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 $333.1 million, up 6.1% year on year. This result surpassed analysts’ expectations by 0.9%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Blue Bird had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 18.9% since reporting and currently trades at $59.08.

Read our full, actionable report on Blue Bird 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 $706.1 million, down 19.4% year on year. This print beat analysts’ expectations by 7.7%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 9% since reporting and currently trades at $58.16.

Read our full, actionable report on Greenbrier here, it’s free.

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