NASDAQ$RUSHA

Rush Enterprises Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported strong fourth quarter and year-end results, with increased revenues and net income compared to the previous year, and announced a dividend increase and share repurchase authorization.

Rush Enterprises reported Q4 2020 revenues of $1.3 billion and net income of $41.0 million, or $0.72 per diluted share. The company's Board of Directors declared a cash dividend of $0.18 per share, a 29% increase over the prior quarterly dividend, and approved a $100 million share repurchase authorization.

  • Q4 revenues totaled $1.3 billion, consistent with Q4 2019.
  • Net income for Q4 2020 was $41.0 million, compared to $23.8 million in Q4 2019.
  • Aftermarket products and services revenues were $394.7 million in Q4 2020, compared to $421.2 million in Q4 2019.
  • The company's absorption ratio was 132.9% in Q4 2020, compared to 116.6% in Q4 2019.

Headline financials

Total Revenue

$1.27B

Previous: $1.32B-3.8%
EPS (adj)

$0.48

Previous: $0.29+65.5%
Dealership Absorption Ratio

132.9%

Previous: 116.6%+14.0%
Capital Expenditures

$28.4M

Previous: $62.9M-54.9%
Free Cash Flow

$144M

Previous: $137M+5.4%
Net Income

$41M

Previous: $23.8M+72.3%
Operating Income

$53.5M

Previous: $39.4M+35.8%
Gross Profit

$236M

Previous: $234M+0.7%
Cash & Equivalents

$312M

Previous: $182M+71.8%
Total Assets

$2.99B

Previous: $3.41B-12.4%
Stock-Based Comp

$3.89M

Previous: $3.2M+21.6%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$1.27B

Q4 2020-3.8%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Rush Enterprises believes that its financial performance in 2021 will improve significantly compared to 2020, but will continue to carefully monitor the pandemic and its impact on the economy and industry, including supply chain issues.

Tailwinds

  • General economic and industry conditions have improved since the second quarter of 2020.
  • Consumer spending remained strong, creating solid freight demand.
  • Truck manufacturers are increasing capacity.
  • Housing, automotive and consumer spending expected to remain strong.
  • Used truck values and demand to remain strong during 2021

Headwinds

  • Uncertainties ahead.
  • Pandemic may affect the economy and our industry.
  • Supply chain issues that may affect truck and parts availability later in the year.
  • Employee benefits and payroll taxes will negatively impact expenses in the first quarter of 2021 compared to the fourth quarter of 2020, as they do every year
  • Component manufacturers’ supply chain issues may limit the industry’s ability to meet demand throughout 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 Q4 2020

Historical avgQ4 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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