NASDAQ$RUSHA

Rush Enterprises Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Rush Enterprises reported a decrease in revenue and net income due to the COVID-19 pandemic and industry downturn, but maintained profitability through expense reductions.

Rush Enterprises reported revenues of $1.003 billion and net income of $16.8 million, or $0.46 per diluted share, for the quarter ended June 30, 2020. The company's board of directors declared a cash dividend of $0.14 per share. The company is resuming purchases under its stock repurchase plan.

  • Revenues were $1.0 billion, and net income was $16.8 million.
  • Earnings per diluted share were $0.46.
  • The absorption ratio was 110.2%.
  • A cash dividend of $0.14 per share was declared, increasing the dividend by 7.7% over the prior quarterly dividend.

Headline financials

Total Revenue

$1B

Previous: $1.54B-35.1%
EPS (adj)

$0.21

Previous: $0.49-57.1%
Dealership Absorption Ratio

110.2%

No prior period
Capital Expenditures

-$82.2M

Previous: -$153M+46.3%
Free Cash Flow

-$65.4M

Previous: -$111M+41.3%
Net Income

$16.8M

Previous: $41.6M-59.6%
Operating Income

$23M

Previous: $61.8M-62.8%
Gross Profit

$192M

Previous: $270M-28.6%
Cash & Equivalents

$216M

Previous: $111M+93.6%
Total Assets

$3.06B

Previous: $3.53B-13.2%
Stock-Based Comp

$3.59M

Previous: $4.26M-15.8%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$1B

Q2 2020-35.1%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company expects to be negatively impacted by COVID-19 for the foreseeable future, but is cautiously optimistic that they will not see any further declines in revenues and they believe that any recovery will be gradual and intermittent over the next few quarters.

Tailwinds

  • Expense reductions are in place to meet market demands and ensure the company’s long-term financial strength.
  • The company's RushCare Call Centers are fully equipped to handle customer phone calls within seconds.
  • Parts Connect offers online ordering.
  • Service Connect offers 24/7 real-time communications.
  • Spot freight rates are healthy, which is encouraging more new businesses to enter the market, and those new businesses usually begin by purchasing used trucks.

Headwinds

  • The COVID-19 pandemic continues to negatively impact the business.
  • Uncertainty about the strength of the overall economy remains.
  • The energy sector remains severely impacted.
  • Global pricing actions have negatively affected rig counts and the number of energy vehicles in service, and this segment is not expected to improve in the near term.
  • Customers remain hesitant to purchase new vehicles due to uncertainty regarding the COVID-19 pandemic, the economy and the upcoming presidential election.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.7%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+14.0%

Q3 2016

Best reaction

-17.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.9%-5.8%-8.0%
Q4 2025+2.9%+4.7%-10.0%
Q3 2025-0.1%-7.3%+3.3%
Q1 2025-0.6%-5.8%-2.6%
Q4 2024+1.3%-9.7%-12.7%
Q3 2024+5.5%+3.9%+11.2%
Q2 2024+7.1%-1.9%+2.9%
Q1 2024-3.8%-3.2%-9.3%
Q4 2023-1.5%-2.2%+1.1%
Q3 2023-9.4%-8.6%+0.1%
Q2 2023+3.8%+1.2%+0.1%
Q1 2023-3.9%-2.3%-2.3%
Q4 2022+7.6%+5.5%-9.5%
Q3 2022-1.3%+2.4%+6.2%
Q2 2022-5.0%-4.0%+1.9%
Q1 2022+3.3%+3.5%+3.4%
Q4 2021-1.3%-1.4%+4.5%
Q3 2021+6.7%+13.4%+18.0%
Q2 2021+7.1%+6.8%-0.8%
Q1 2021-1.7%+3.2%+0.6%
Q4 2020-3.2%-3.9%+16.0%
Q3 2020+2.8%+3.2%+6.2%
Q2 2020+8.0%+9.2%+12.1%
Q1 2020+7.7%+13.3%+21.5%
Q4 2019-7.9%-4.7%-25.3%
Q3 2019+1.7%+4.3%+2.2%
Q2 2019+4.2%+5.4%+4.7%
Q1 2019-1.9%-3.7%-19.2%
Q4 2018+9.9%+13.6%+7.3%
Q3 2018-0.9%+4.8%+12.8%
Q2 2018-5.3%-2.0%-4.3%
Q1 2018-5.2%-4.3%+0.6%
Q4 2017-11.2%-11.8%-9.6%
Q3 2017+11.8%+7.0%+2.6%
Q2 2017+7.4%+13.0%+2.6%
Q1 2017+6.7%+7.4%+4.5%
Q4 2016+4.8%+7.3%+5.4%
Q3 2016+14.0%+15.0%+28.9%
Q2 2016+0.7%+1.6%+4.9%
Q1 2016-1.2%
Q4 2015-17.1%
Q3 2015-5.3%
Q2 2015+4.0%
Q1 2015-0.2%
Q4 2014+0.5%
Q3 2014+0.1%
Q2 2014+6.8%
Q1 2014-2.6%
Q4 2013+2.4%
Q3 2013+2.1%
Q2 2013-3.8%
Q1 2013+1.9%
Q2 2012-2.9%
Q4 2012+2.2%
Q3 2012+0.7%
Q1 2011-3.2%
Q1 2012-3.2%
Q4 2011-1.0%
Q4 2009-1.0%
Q2 2011-1.0%
Q3 2011-4.6%
Q3 2010-4.6%
Q2 2010+0.3%
Q4 2010+0.3%
Q1 2010+13.0%

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