Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) will be reporting results tomorrow afternoon. Here’s what to look for.
Rush Enterprises beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $1.9 billion, down 4.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Is Rush Enterprises a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rush Enterprises’s revenue to decline 8.5% year on year to $1.86 billion, a reversal from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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 missed Wall Street’s revenue estimates three times over the last two years.
Looking at Rush Enterprises’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GATX delivered year-on-year revenue growth of 12.2%, beating analysts’ expectations by 2.4%, and Air Lease reported flat revenue, topping estimates by 1.6%. GATX traded up 8.3% following the results while Air Lease was also up 6.7%.
Read our full analysis of GATX’s results here and Air Lease’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed’s rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the industrial distributors stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.6% on average over the last month. Rush Enterprises’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $69.50 (compared to the current share price of $60.47).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
