Why Wabash National's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of trailer manufacturer Wabash National jumped 11% today after releasing earnings.
So what: Revenue jumped 14% in the second quarter to $413 million and net income rose from $1.9 million to $14.1 million, or $0.20 per share. Excluding one-time items, earnings were $0.21 per share, which was $0.02 ahead of estimates.
Now what: The diversified products segment accounted for all of the growth and then some during the quarter. Management has tried to diversify the company away from just trailers, and that appears to be a good move right now. With momentum strong and shares trading at just seven times trailing earnings, I think this stock has even more room to move higher.
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The article Why Wabash National's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.