Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) will be announcing earnings results this Wednesday after the bell. Here’s what you need to know.
Rush Enterprises beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.93 billion, down 4.8% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
This quarter, analysts are expecting Rush Enterprises’s revenue to decline 6.2% year on year to $1.78 billion, a further deceleration from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rush Enterprises has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 1.8% on average.
Looking at Rush Enterprises’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FTAI Aviation delivered year-on-year revenue growth of 43.2%, meeting analysts’ expectations, and GATX reported revenues up 8.4%, topping estimates by 0.8%. GATX traded down 4.7% following the results.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 3.8% on average over the last month. Rush Enterprises is down 6.2% during the same time and is heading into earnings with an average analyst price target of $60 (compared to the current share price of $50.56).
