Latest news with #RustyRush
Yahoo
30-07-2025
- Automotive
- Yahoo
Rush Enterprises (NASDAQ:RUSHA) Beats Q2 Sales Targets
Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) reported Q2 CY2025 results exceeding the market's revenue expectations , but sales fell by 4.8% year on year to $1.93 billion. Its GAAP profit of $0.90 per share was 12.5% above analysts' consensus estimates. Is now the time to buy Rush Enterprises? Find out in our full research report. Rush Enterprises (RUSHA) Q2 CY2025 Highlights: Revenue: $1.93 billion vs analyst estimates of $1.90 billion (4.8% year-on-year decline, 1.6% beat) EPS (GAAP): $0.90 vs analyst estimates of $0.80 (12.5% beat) Adjusted EBITDA: $127.8 million vs analyst estimates of $156.2 million (6.6% margin, 18.2% miss) Operating Margin: 5.7%, in line with the same quarter last year Market Capitalization: $4.25 billion 'The second quarter of 2025 continued to present challenges for commercial truck operators and the broader industry that supports them. While there have been sporadic signs of recovery from the freight recession that has impacted over-the-road carriers for more than two years, freight rates remain depressed, and overcapacity persists. In addition, ongoing economic uncertainty, particularly around U.S. trade policy and its potential impact on the supply chain and overall economy, combined with a lack of clarity regarding engine emissions regulations, has led many customers to delay vehicle acquisition and maintenance decisions,' said W.M. 'Rusty' Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Company Overview Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Rush Enterprises grew its sales at a decent 8.1% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Rush Enterprises's recent performance shows its demand has slowed as its revenue was flat over the last two years. We can better understand the company's revenue dynamics by analyzing its most important segments, Vehicles and Aftermarket, which are 61.7% and 33% of revenue. Over the last two years, Rush Enterprises's Vehicles (new and used commercial trucks) and Aftermarket (parts and services) revenues were flat. This quarter, Rush Enterprises's revenue fell by 4.8% year on year to $1.93 billion but beat Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to grow 3.9% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Rush Enterprises was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.1% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Rush Enterprises's operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Rush Enterprises generated an operating margin profit margin of 5.7%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Rush Enterprises's EPS grew at an astounding 23.4% compounded annual growth rate over the last five years, higher than its 8.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Rush Enterprises's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Rush Enterprises's operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. On top of that, its share count shrank by 3.1%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Rush Enterprises, its two-year annual EPS declines of 11.3% mark a reversal from its (seemingly) healthy five-year trend. We hope Rush Enterprises can return to earnings growth in the future. In Q2, Rush Enterprises reported EPS at $0.90, down from $0.97 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Rush Enterprises's Q2 Results We enjoyed seeing Rush Enterprises exceed analysts' Aftermarket revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its EBITDA missed. Overall, this was a weaker quarter. The stock remained flat at $53.12 immediately following the results. Is Rush Enterprises an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Rush Enterprises's Q1 Earnings Call
Rush Enterprises began 2025 with a quarter that saw revenue and adjusted earnings per share come in above Wall Street expectations, even as overall sales declined slightly year over year. Management attributed this relative outperformance to strong results in vocational and public sector truck sales, which helped offset weaker demand in the core Class 8 segment impacted by the ongoing freight recession. CEO Rusty Rush described the operating environment as "difficult to say the least," emphasizing the company's diversified customer base and strategic initiatives as key factors supporting performance despite soft industry conditions and persistent uncertainty around tariffs and emissions regulations. Is now the time to buy RUSHA? Find out in our full research report (it's free). Revenue: $1.85 billion vs analyst estimates of $1.83 billion (1.1% year-on-year decline, 1.4% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.72 (1.4% beat) Adjusted EBITDA: $147 million vs analyst estimates of $146.4 million (7.9% margin, in line) Operating Margin: 5%, in line with the same quarter last year Market Capitalization: $4.06 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Daniel Imbro (Stephens) asked about new unit sales trends and customer purchasing behavior through the quarter. CEO Rusty Rush explained that demand was shaped by ongoing uncertainty, with some customers pausing purchases due to tariff and emissions regulation changes. Daniel Imbro (Stephens) followed up on the softness in parts and service revenues, asking if management expected a return to year-over-year growth. Rush clarified that he anticipated only sequential improvement, citing choppy demand and weather impacts early in the quarter. Andrew Obin (Bank of America) questioned the outlook for second quarter Class 8 and parts/service sales. Rush indicated slight sequential improvements but stressed the difficulty of forecasting due to volatile policy and market conditions. Andrew Obin (Bank of America) inquired about cost management and whether expense levels could return to pre-inflation baselines. Rush responded that inflationary pressures have made returning to earlier cost structures unrealistic, but ongoing expense discipline remains a priority. Avi Jaroslawicz (UBS) probed whether customer hesitancy was driven more by macroeconomic uncertainty or pricing. Rush responded that both factors play a role, with customers needing confidence in their own businesses before committing to purchases, compounded by unpredictable pricing from potential regulatory changes. In the coming quarters, our team will be monitoring (1) developments in U.S. trade policy and emissions regulations, which could rapidly alter truck pricing and customer demand; (2) the pace of recovery in aftermarket parts and service sales, particularly as weather patterns and miles driven normalize; and (3) the ability of Rush Enterprises to sustain market share gains in vocational and public sector segments. Continued expense discipline and operational flexibility will also be important measures of execution. Rush Enterprises currently trades at $51.74, up from $51.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Globe and Mail
29-05-2025
- Business
- Globe and Mail
Rush Enterprises, Inc. Increases Stock Repurchase Program by $50 Million
SAN ANTONIO, May 29, 2025 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that its Board of Directors approved an increase of $50 million to its existing stock repurchase program authorizing the Company to repurchase, from time to time, up to an aggregate of $200 million of its shares of Class A common stock, $.01 par value per share, and/or Class B common stock, $.01 par value per share. This increase follows the Company nearing the original authorization limit of $150 million. 'Despite the continued uncertainty surrounding tariffs, the continuing freight recession and challenging commercial vehicle market, we remain confident in our strong capital position, liquidity and ability to generate strong free cash flow, and we are pleased to take this opportunity to enhance shareholder value through this $50 million increase to our stock repurchase program,' said W.M. 'Rusty' Rush, Chairman, Chief Executive Officer and President of the Company. 'The Company's strategic focus on maintaining a diversified customer base and our 'One Team' sales approach has served us well, and we believe our solid financial performance during the recent challenging industry and market conditions will allow us to continue to invest in our growth strategy while also returning capital to our shareholders,' Rush stated. Repurchases will be made at times and in amounts as the Company deems appropriate and may be made through open market transactions at prevailing market prices, privately negotiated transactions or by other means in accordance with federal securities laws. The actual timing, number and value of repurchases under the stock repurchase program will be determined by management in its discretion and will depend on a number of factors, including market conditions, stock price and other factors. The stock repurchase program expires on December 31, 2025, and may be suspended or discontinued at any time. About Rush Enterprises, Inc. Rush Enterprises, Inc. is the premier solutions provider to the commercial vehicle industry. The Company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 150 locations in 23 states and Ontario, Canada. These vehicle centers, strategically located in high traffic areas on or near major highways throughout the United States and Ontario, Canada, represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus and Blue Bird. They offer an integrated approach to meeting customer needs – from sales of new and used vehicles to aftermarket parts, service and body shop operations plus financing, insurance, leasing and rental. Rush Enterprises' operations also provide CNG fuel systems (through its investment in Cummins Clean Fuel Technologies, Inc.), telematics products and other vehicle technologies, as well as vehicle up-fitting, chrome accessories and tires. For more information, please visit us at and on Twitter @rushtruckcenter and Certain statements contained in this release, including those concerning current and projected market conditions and financial performance, are 'forward-looking' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the information included in this release. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, competitive factors, general U.S. economic conditions, economic conditions in the new and used commercial vehicle markets, customer relations, relationships with vendors, inflation and the interest rate environment, governmental regulation and supervision, including engine emission regulations, U.S. and global trade policies, product introductions and acceptance, changes in industry practices, one-time events and other factors described herein and in filings made by the Company with the Securities and Exchange Commission, including in our annual report on Form 10-K for the fiscal year ended December 31, 2024. In addition, the declaration and payment of cash dividends and authorization of future share repurchase programs remains at the sole discretion of the Company's Board of Directors and the issuance of future dividends and authorization of future share repurchase programs will depend upon the Company's financial results, cash requirements, future prospects, applicable law and other factors that may be deemed relevant by the Company's Board of Directors. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual business and financial results and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
Yahoo
09-05-2025
- Automotive
- Yahoo
RUSHA Q1 Earnings Call: Navigating Market Uncertainty Amid Tariffs and Freight Recession
Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 1.1% year on year to $1.85 billion. Its non-GAAP profit of $0.73 per share was 1.4% above analysts' consensus estimates. Is now the time to buy RUSHA? Find out in our full research report (it's free). Revenue: $1.85 billion vs analyst estimates of $1.83 billion (1.1% year-on-year decline, 1.4% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.72 (1.4% beat) Adjusted EBITDA: $147 million vs analyst estimates of $146.4 million (7.9% margin, in line) Operating Margin: 5%, in line with the same quarter last year Free Cash Flow was $465.8 million, up from -$309.4 million in the same quarter last year Market Capitalization: $3.95 billion Rush Enterprises' first quarter results were shaped by continued headwinds in the commercial vehicle market, with management pointing to the ongoing freight recession, shifting U.S. trade policies, and evolving emissions regulations as key challenges. CEO Rusty Rush noted that while new Class 8 truck sales were down industry-wide, the company outperformed broader trends by focusing on vocational and public sector customers, and leveraging its ready-to-roll inventory program for medium-duty trucks. He emphasized that after a slow start, sequential improvements materialized as the quarter progressed, particularly in used truck sales and aftermarket services. Looking ahead, management expressed caution regarding the rest of the year, citing significant uncertainty around tariffs and future emissions standards, which are impacting both customer demand and the company's ability to forecast. Rusty Rush commented, 'It's hard to run a business living in an uncertain world like that,' and highlighted that customers are acting conservatively, often replacing vehicles rather than expanding fleets. The company expects some improvement in aftermarket revenues and a slight uptick in new truck deliveries in the coming quarter, but remains unwilling to project further out given the volatile environment. Management detailed the primary forces influencing the quarter's results, emphasizing both the external environment and internal strategic responses. The team also highlighted several operational adjustments and market trends set to impact the business in the coming quarters. Vocational and Public Sector Focus: While Class 8 truck sales to over-the-road customers declined, Rush Enterprises benefited from steady demand in vocational (construction and utility-focused) and public sector segments, which helped offset overall industry weakness. Ready-to-Roll Inventory Program: The company's unique approach to maintaining a stock of ready-to-roll medium-duty vehicles allowed it to outperform market declines in Class 4 through 7 truck sales, capturing market share even as the broader segment contracted. Aftermarket Expansion: Aftermarket revenue—covering parts, service, and body shop work—was down year over year but improved sequentially. The expansion of the aftermarket sales force and addition of service technicians are expected to reduce customer wait times and improve service levels moving forward. Expense Management: General and administrative expenses were reduced by 5.5% year over year, reflecting ongoing efforts to control costs amid weaker sales. Management views expense discipline as a key lever to support profitability during uncertain market periods. Tariffs and Regulatory Changes: Management cited ongoing uncertainty regarding U.S. tariffs on imported parts and evolving emissions regulations as major factors clouding the industry outlook. The company is closely monitoring both, noting that supply chain adjustments and regulatory clarity will be essential for improved demand and long-term planning. Rush Enterprises' outlook for the next quarter and the rest of the year hinges on external factors such as macroeconomic conditions, regulatory clarity, and industry demand, with management prioritizing flexibility and operational discipline. Tariff and Emissions Uncertainty: Management believes that resolution or clarity on U.S. tariff policy and emissions standards will be crucial, as ongoing changes disrupt pricing, supply chains, and customer confidence in making new vehicle purchases. Freight Market Recovery: The company's growth prospects are closely tied to a recovery in freight demand, as continued soft miles driven and low fleet utilization limit both new truck sales and aftermarket service opportunities. Expense Control and Operational Flexibility: Management's commitment to expense management and ability to respond quickly to changing business conditions are expected to help mitigate downside risk and protect margins in a volatile environment. Daniel Imbro (Stephens): Asked about trends in new unit sales and customer expenditure plans. Management stressed ongoing uncertainty, noting that many customers are limiting purchases to replacements as opposed to fleet expansion. Daniel Imbro (Stephens): Inquired about the softness in parts and service revenue and expectations for Q2. Management clarified that sequential improvement is expected, but would not commit to year-over-year growth due to continued volatility. Andrew Obin (Bank of America): Sought clarity on sequential trends in Class 8 and aftermarket sales for Q2. Management expects slight sequential improvement, but highlighted unpredictability due to shifting tariffs and market conditions. Andrew Obin (Bank of America): Questioned whether customers' hesitancy is driven more by pricing uncertainty or broader macro concerns. Management responded that both play a role, but business fundamentals and demand are the primary drivers of customer caution. Avi Jaroslawicz (UBS): Asked how regulatory changes around emissions might impact pre-buying behavior and long-term demand. Management said the lack of clarity on new standards reduces the likelihood of a significant pre-buy, and that future demand will depend on both regulatory and economic factors. In upcoming quarters, the StockStory team will be watching (1) whether regulatory clarity emerges around tariffs and emissions standards, (2) signs of stabilization or recovery in freight demand and miles driven, and (3) sustained improvements in aftermarket revenue and service efficiency. We will also monitor how the company leverages its inventory and cost control strategies to maintain market share in a fluctuating environment. Rush Enterprises currently trades at a forward EV-to-EBITDA ratio of 7.8×. In the wake of earnings, is it a buy or sell? Find out in our free research report. 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 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
