What Happened?
Shares of semi trailers and liquid transportation container manufacturer Wabash (NYSE: WNC) fell 3.8% in the afternoon session after the company reported disappointing third-quarter financial results, missing analyst expectations and lowering its full-year forecast.
The truck trailer maker's adjusted loss was $0.51 per share, which was worse than the anticipated loss of $0.24. Revenue also fell short, coming in at $382 million against estimates of $390.07 million. Sales saw a notable decline from $464.04 million in the same period of the prior year. The company pointed to softer-than-expected demand as a key reason for the poor performance. Looking ahead, Wabash reduced its full-year 2025 revenue outlook to $1.5 billion and adjusted its earnings guidance to a greater loss, now expecting between $1.95 and $2.05 per share. While the company reported a GAAP profit of $0.97 per share, this was due to a one-time $81 million gain from a legal settlement.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Wabash? Access our full analysis report here.
What Is The Market Telling Us
Wabash’s shares are extremely volatile and have had 35 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 15 days ago when the stock gained 2.2% on the news that its peer, J.B. Hunt Transport Services, reported strong third-quarter 2025 earnings, boosting sentiment across the transportation sector. J.B. Hunt announced an 18% rise in earnings per share and an 8% increase in operating income for the quarter compared to the previous year. The company's earnings of $1.76 per share exceeded expectations of $1.46, while its revenue of $3.05 billion also surpassed forecasts. This strong performance from a major industry player signaled a healthy market, which in turn lifted investor confidence in related companies like Wabash. The positive report contributed to broader buying in transportation stocks.
Wabash is down 54% since the beginning of the year, and at $7.83 per share, it is trading 61.4% below its 52-week high of $20.26 from December 2024. Investors who bought $1,000 worth of Wabash’s shares 5 years ago would now be looking at an investment worth $527.29.
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