NASDAQ$RUSHA

Rush Enterprises Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported revenues of $1.18 billion and net income of $33.9 million for the third quarter of 2020.

Rush Enterprises reported a decrease in revenue to $1.18 billion and a decrease in net income to $33.9 million, or $0.60 per diluted share, compared to the third quarter of 2019. The company experienced improvements from the second quarter of 2020, driven by improved truck sales, and implemented cost management measures that improved profitability, resulting in an absorption ratio of 119.4%.

  • Revenues reached $1.18 billion, with a net income of $33.9 million.
  • Earnings per diluted share were $0.60.
  • The board declared a cash dividend of $0.14 per share of Class A and Class B common stock.
  • The absorption ratio was 119.4%.

Headline financials

Total Revenue

$1.18B

Previous: $1.6B-26.3%
EPS (adj)

$0.40

Previous: $0.47-14.9%
Dealership Absorption Ratio

119.4%

No prior period
Capital Expenditures

-$108M

Previous: -$231M+53.2%
Free Cash Flow

-$73.9M

Previous: -$191M+61.4%
Net Income

$33.9M

Previous: $39.1M-13.2%
Operating Income

$42.9M

Previous: $58.3M-26.5%
Gross Profit

$212M

Previous: $265M-19.8%
Cash & Equivalents

$260M

Previous: $86.1M+201.4%
Total Assets

$3.01B

Previous: $3.41B-11.6%
Stock-Based Comp

$3.32M

Previous: $2.71M+22.7%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$1.18B

Q3 2020-26.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

While many uncertainties remain, the company continues to expect that any economic recovery will be gradual. The company was encouraged by its third quarter results and remains cautiously optimistic that the worst is behind it. The company remains focused on navigating this difficult period and monitoring the pandemic and its effects on the economy, its industry, customers and employees.

Tailwinds

  • Increased consumer spending increased demand for transportation services.
  • The company implemented rapid and widespread cost reduction measures.
  • The balance sheet and cash position remain strong.
  • The Board of Directors approved lifting the suspension of the previously announced stock repurchase program.
  • The Board of Directors also approved cash dividend payments to stockholders that effectively increases the dividend amount by 50% over the prior quarterly dividend.

Headwinds

  • The ongoing COVID-19 pandemic and the previously anticipated industry downturn had a negative impact on the third quarter results.
  • Many uncertainties about the pandemic and the economy in general remain.
  • The pandemic will have a significant effect on the business for the foreseeable future.
  • Activity from the energy market remains significantly lower than normal and is not expected to recover any time soon.
  • The company expects some seasonal softness through the winter, which is normal for the business.

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 Q3 2020

Historical avgQ3 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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