What happened

Tractor-trailer manufacturer Wabash National (WNC 2.54%) beat expectations in the first quarter and raised its guidance for the full year. Investors were climbing on board Wednesday, sending shares up by as much as 18%. As of 12:50 p.m. ET, the stock was up by 14.5%.

So what

Wabash is one of the world's largest producers of trailers, with a portfolio that includes dry freight and refrigerated trailers, flatbed trailers, tank trailers, and dry and refrigerated truck bodies.

Though its revenue of $621 million came in about $4 million short of expectations, it earned $1.04 per share in the quarter, more than double the analysts' consensus estimate of $0.48 per share.

President and CEO Brent Yeagy attributed the earnings gain to the company's efforts to streamline operations.

"Our first quarter financial results are a significant achievement, and all the more exciting when viewed through the lens of strategic progress," Yeagy said in the earnings press release. "With a new strategy, new management system and a new strategic deployment process we have acted on the business to strategically position our portfolio for the future and drive to new and higher levels of business execution."

Now what

Wabash also raised its guidance for full-year earnings by a significant amount. The company now expects to earn between $4 per share and $4.50 per share in 2023, up from its previous guidance range of $2.70 per share to $3 per share. Analysts had been expecting full-year earnings of $2.92 per share.

This is a tricky time for transportation companies and the vendors who serve them. Freight rates have been under pressure and truckers are cautious about the economy. But Wabash's backlog grew by 31% year over year in Q1 to $3.1 billion, giving management some confidence that the company will be able to ride out whatever turbulence might lie ahead.

"We expect the power of our first to final mile portfolio to allow us to continue posting financial performance that exceeds results from prior cycles," Yeagy said.

The stock's performance Wednesday indicates that investors are buying into Wabash's plan.