NASDAQ$RUSHA

Rush Enterprises Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Rush Enterprises reported a decrease in net income despite an increase in revenue due to challenging market conditions impacting aftermarket sales.

Rush Enterprises reported a revenue increase of 1.2% to $2.027 billion for Q2 2024, but net income decreased to $78.7 million, or $0.97 per diluted share, compared to $98.3 million, or $1.17 per diluted share, in Q2 2023. The company declared a cash dividend of $0.18 per share, a 5.9% increase over the prior quarter. The results were impacted by weak demand for Class 8 trucks, aftermarket parts, and services due to the freight recession and high interest rates.

  • Revenues increased by 1.2% year-over-year to $2.027 billion.
  • Net income decreased from $98.3 million to $78.7 million, with EPS down from $1.17 to $0.97.
  • Aftermarket products and services revenue decreased by 3.6% to $627.4 million.
  • The company increased its quarterly cash dividend by 5.9% to $0.18 per share.

Headline financials

Total Revenue

$2.03B

Previous: $2B+1.2%
EPS

$97.00

Previous: $1.17+8190.6%
Dealership Absorption Ratio

134.0%

Previous: 139.7%-4.1%
New Heavy-Duty Vehicles Sold

4.1K

No prior period
New Medium-Duty Commercial Vehicles Sold

3.7K

No prior period
New Light-Duty Commercial Vehicles Sold

537

No prior period
Used Commercial Vehicles Sold

1.7K

No prior period
Capital Expenditures

-$173M

Previous: -$186M+7.2%
Free Cash Flow

-$93.9M

Previous: -$87.7M-7.0%
Net Income

$78.7M

Previous: $98.3M-20.0%
Operating Income

$124M

Previous: $143M-12.9%
Gross Profit

$392M

Previous: $414M-5.2%
Cash & Equivalents

$167M

Previous: $192M-12.8%
Total Assets

$4.51B

Previous: $4.13B+9.2%
Stock-Based Comp

$5.52M

Previous: $5.95M-7.3%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$2.03B

Q2 2024+1.2%vs Q2 2023
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

The company expects the freight recession to continue through the remainder of the year, with no meaningful recovery in freight rates anticipated until 2025. New Class 8 truck sales are expected to soften in Q3, while Class 4-7 commercial vehicle sales are expected to remain steady. The company anticipates commercial vehicle sales will keep pace with, if not outperform, the market.

Tailwinds

  • Expense reductions implemented in Q2 to mitigate expected revenue decrease.
  • Diverse customer base and focus on strategic initiatives will help manage the challenging market cycle.
  • Confidence in the professional salesforce to take advantage of sales opportunities.
  • Expect vocational sales to remain strong in the third quarter.
  • Executed well on used truck pricing and inventory strategies.

Headwinds

  • Freight recession expected to continue through the remainder of the year.
  • No meaningful recovery in freight rates anticipated until 2025.
  • Difficult operating conditions expected to continue for the near term.
  • New Class 8 truck sales expected to soften in Q3.
  • Expect truck pricing to become more competitive in the second half of the year.

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 2024

Historical avgQ2 2024

+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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