LAFAYETTE - Wabash National Corporation (NYSE: NYSE:WNC), a manufacturer of transportation and logistics solutions, is contemplating legal action following a recent jury verdict in St. Louis. The company expressed disagreement with the outcome of the Williams et al. v. Wabash case related to a 2019 motor vehicle accident involving one of its trailers.
The incident in question occurred when a passenger vehicle collided with the rear of a 2004 Wabash trailer. According to Wabash's General Counsel and Chief Administrative Officer Kristin Glazner, the trailer was nearly stationary at the time of the high-speed accident. Glazner stated, "While this was a tragic accident, we respectfully disagree with the jury's verdict and firmly believe it is not supported by the facts or the law." She emphasized that no technology for rear impact guards or trailer safety available would have changed the outcome of the collision.
Wabash pointed out that the trailer met all regulatory standards at the time of its manufacture, nearly two decades prior to the accident. The company also noted that the jury was not presented with evidence regarding the driver's blood alcohol level, which was over the legal limit, or the fact that neither the driver nor the passenger was wearing a seatbelt at the time of the crash.
Despite the jury's decision, which argued that the occupants would have survived if the vehicle had not penetrated the trailer's rear impact guard, Wabash stands by the quality and safety of its products. The company asserts that the ruling will not affect its commitment to providing safe products for the transportation industry.
Wabash National Corporation, headquartered in Lafayette, Indiana, is known for offering a wide range of products and services, including trailers, truck bodies, and specialty equipment designed to enhance road safety. The company's portfolio is aimed at enabling customers in the transportation, logistics, and distribution industries to operate more effectively.
The information for this article is based on a press release statement from Wabash National Corporation.
In other recent news, Wabash National Corporation has been ordered to pay a substantial $462 million in damages following a product liability lawsuit. The company is contesting the verdict and is considering all legal options, including appeals. In the midst of this, Wabash reported Q2 2024 earnings that met revenue expectations and surpassed earnings per share forecasts. The company adjusted its full-year 2024 guidance to a midpoint of $2.1 billion in revenue and $1.55 in EPS. Wabash also declared a quarterly dividend of $0.08 per share, reinforcing its commitment to shareholder value.
DA Davidson maintained a neutral stance on shares of Wabash National, keeping the price target at $23.00, despite improvements at the company's new South Plant. In addition to financial updates, Wabash announced a series of executive leadership changes, with Mike Pettit transitioning to Senior Vice President, Chief Growth Officer, and Patrick Keslin stepping in as Senior Vice President, Chief Financial Officer. These are the recent developments in Wabash National Corporation.
InvestingPro Insights
As Wabash National Corporation (NYSE: WNC) navigates the legal challenges stemming from the recent jury verdict, investors and stakeholders may be looking for stability and signs of the company's financial health. According to InvestingPro data, Wabash National has a market capitalization of $831.15 million and is trading at a low earnings multiple with a P/E ratio of 5.66, suggesting the stock may be undervalued relative to earnings.
InvestingPro Tips reveal that management has been actively buying back shares, which could indicate confidence in the company's future performance. Additionally, Wabash National boasts a high shareholder yield, a metric that combines dividend payments and share repurchases to show the total payout to shareholders.
However, analysts anticipate a sales decline in the current year, and net income is expected to drop. Despite these projections, the company's stock price movements have been quite volatile, and it is trading near its 52-week low after taking a significant hit over the last six months. The silver lining is that the company has liquid assets that exceed its short-term obligations, providing a cushion against financial stress.
Investors considering Wabash National as a potential addition to their portfolio can find further insights and over ten additional InvestingPro Tips by visiting https://www.investing.com/pro/WNC. These tips could provide a more comprehensive understanding of the company's financial position and future outlook, especially in light of the recent legal developments.
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