What Happened?
Shares of semi trailers and liquid transportation container manufacturer Wabash (NYSE: WNC) fell 8.2% in the afternoon session after the company reported weaker-than-expected full-year guidance that overshadowed its second-quarter results.
The transportation equipment manufacturer reported a second-quarter adjusted loss of $0.15 per share on revenue of $459 million, both of which were better than analyst expectations. However, investors focused on the company's significantly weakened outlook for the rest of the year. Wabash cut its full-year 2025 revenue forecast to approximately $1.6 billion, well below the $1.71 billion analysts had anticipated. It also lowered its adjusted earnings per share (EPS) guidance to a loss between $1.00 and $1.30, a substantial drop from the consensus estimate of a $0.75 loss. Management pointed to a challenging market, with CEO Brent Yeagy stating that "demand remains muted across the trailer industry." The company's backlog also fell by 23.1% year-over-year, signaling a slowdown in future business.
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What Is The Market Telling Us
Wabash’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 5.2% as a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
Wabash is down 42.1% since the beginning of the year, and at $9.84 per share, it is trading 54.2% below its 52-week high of $21.49 from July 2024. Investors who bought $1,000 worth of Wabash’s shares 5 years ago would now be looking at an investment worth $833.45.
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