Latest news with #BLBD
Yahoo
3 days ago
- Business
- Yahoo
BLBD Q2 Earnings Call: Tariffs Pressure EV Margins as Blue Bird Maintains Guidance
School bus company Blue Bird (NASDAQ:BLBD) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 3.7% year on year to $358.9 million. The company's full-year revenue guidance of $1.45 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP profit of $0.96 per share was in line with analysts' consensus estimates. Is now the time to buy BLBD? Find out in our full research report (it's free). Revenue: $358.9 million vs analyst estimates of $356.8 million (3.7% year-on-year growth, 0.6% beat) Adjusted EPS: $0.96 vs analyst estimates of $0.95 (in line) Adjusted EBITDA: $49.21 million vs analyst estimates of $47.31 million (13.7% margin, 4% beat) The company reconfirmed its revenue guidance for the full year of $1.45 billion at the midpoint EBITDA guidance for the full year is $200 million at the midpoint, above analyst estimates of $197.9 million Operating Margin: 9.4%, down from 10.4% in the same quarter last year Sales Volumes rose 1.8% year on year (-2.2% in the same quarter last year) Market Capitalization: $1.31 billion Blue Bird's second quarter results reflected ongoing demand for school buses, with management crediting higher average selling prices and a mix shift toward alternative power vehicles as key drivers. CEO John Wyskiel highlighted that the company's core combustion engine business remained stable, while sales of electric vehicles (EVs) reached a quarterly record. CFO Razvan Radulescu noted operational improvements and strategic cost management contributed to margin performance, though increased investments in headcount and engineering partially offset gains. Management acknowledged the impact of recently implemented tariffs, describing them as an emerging headwind, particularly for EVs, but emphasized that proactive pricing actions and a strong backlog supported operational stability in the quarter. Looking ahead, Blue Bird's guidance assumes continued strong demand for school buses and a balanced mix across product lines, but management flagged tariffs and supply chain volatility as significant risks. CFO Razvan Radulescu stated, "We are working with our supply chain partners to find alternative sources in the United States and North America, but this takes time." CEO John Wyskiel explained that the company may intentionally reduce EV production in coming quarters if tariff pressures persist, while substituting orders with internal combustion engine vehicles as needed. Management expects state and federal funding, including rounds of the EPA Clean School Bus Program, to remain supportive, while ongoing pricing adjustments are intended to offset rising input costs and maintain margin targets. Management identified sustained demand, pricing actions, and a growing alternative power mix as key factors in the quarter, while tariffs and supply chain challenges began to pressure margins and segment mix. Alternative power mix growth: Blue Bird reported increased sales of EV and propane-powered buses, maintaining its leadership in alternative power segments. Management cited owner loyalty and exclusive supplier status for propane models as drivers of higher margins and customer retention. Pricing adjustments offset cost pressures: The company implemented targeted price increases across product lines, including a 2% tariff-related hike and an additional 2% increase on new orders, to counteract the impact of new tariffs and rising material costs. Tariff impact most acute for EVs: Management explained that newly imposed tariffs, especially the 145% rate on certain Chinese imports, significantly increased the cost structure of EVs, prompting Blue Bird to temporarily prioritize internal combustion engine models over EVs until the situation stabilizes. Strong industry backlog and funding support: The company ended the quarter with a backlog representing over six months of production and continued to benefit from state and federal funding flows, particularly from the EPA Clean School Bus Program. Commercial chassis segment launch: Blue Bird debuted a new commercial chassis designed for propane and EV powertrains, targeting delivery and last-mile fleet customers, with a planned market launch in 2026. Early customer interest and best-in-class features were highlighted as potential growth drivers. Blue Bird's outlook is shaped by ongoing demand, evolving regulatory dynamics, and the company's strategic pricing and product mix decisions. Tariff-driven product mix shifts: Management stated that if high tariffs on EV components persist, Blue Bird will shift production toward internal combustion engine and propane buses, which are less affected by tariffs, to protect margins and meet customer demand. Dependence on government funding: The company's growth plan relies on continued state and federal subsidies, including expected future rounds of EPA grants. Management noted potential timing uncertainty for these funding programs, which could impact order flow and segment mix. Pricing strategy and supply chain adaptation: Blue Bird is proactively increasing prices to offset rising costs from tariffs and inflation, while working with suppliers to find alternative sourcing. Management believes these measures are critical to maintaining EBITDA margin targets, but acknowledged execution risk if material costs rise further or supply chain constraints worsen. In the coming quarters, key developments to monitor will include (1) whether Blue Bird can successfully execute price increases without eroding customer demand, (2) how persistent tariff pressures influence the company's EV production and segment mix, and (3) the pace of EPA Clean School Bus Program funding rounds and their effect on order intake. Strategic progress in launching the commercial chassis product and sourcing alternatives to tariff-impacted components will also be key milestones. Blue Bird currently trades at a forward P/E ratio of 9.8×. Should you double down or take your chips? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Electric school bus funds ‘flowing' positive for Blue Bird, says Barclays
Barclays says round 3 of the Clean School Bus was unfrozen by the EPA after a review in accordance with recent executive orders, noting that about 10% of the roughly $900M total was 'approved in the last week alone.' This news is 'incrementally positive' for Blue Bird (BLBD) in a backdrop where 'most things EV have been seemingly more cautious,' according to the analyst, who has an Overweight rating and $54 price target on the bus maker's shares. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on BLBD: Disclaimer & DisclosureReport an Issue Blue Bird price target lowered to $61 from $67 at DA Davidson Trump Trade: President said to end IRS Direct File, block DeepSeek Electric school bus shift stalls amid federal funding pause, Bloomberg says
Yahoo
18-04-2025
- Business
- Yahoo
Blue Bird (BLBD): 3 Reasons We Love This Stock
Blue Bird's stock price has taken a beating over the past six months, shedding 27.2% of its value and falling to $33.05 per share. This might have investors contemplating their next move. Following the drawdown, is now the time to buy BLBD? Find out in our full research report, it's free. With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Blue Bird's operating margin rose by 7.6 percentage points over the last five years, as its sales growth gave it operating leverage. Its operating margin for the trailing 12 months was 10%. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Blue Bird's EPS grew at a solid 11.5% compounded annual growth rate over the last five years, higher than its 5.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. A company's ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Fortunately, Blue Bird's ROIC has increased significantly over the last few years. This is a great sign when paired with its already strong returns. It could suggest its competitive advantage or profitable growth opportunities are expanding. These are just a few reasons why Blue Bird ranks highly on our list. With the recent decline, the stock trades at 8.2× forward price-to-earnings (or $33.05 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
