NASDAQ$RUSHA

Rush Enterprises Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Rush Enterprises reported record high revenues and profitability for Q4 2022, driven by increased dealership numbers and strong demand.

Rush Enterprises reported Q4 2022 revenues of $1.9 billion and net income of $98.3 million. The company's performance was driven by strong demand for new Class 8 trucks and aftermarket parts and services. The Board declared a cash dividend of $0.21 per share.

  • Achieved record high revenues and profitability due to increased number of dealerships and strong demand for new Class 8 trucks and aftermarket parts and services.
  • Outpaced the industry in Class 8 new truck sales due to the timing of large fleet deliveries early in the year.
  • Grew aftermarket revenues due to strong demand resulting from a healthy freight market and continued constraints on new truck production.
  • Expanded technician workforce and reinforced focus on supporting national accounts with aftermarket sales team.

Headline financials

Total Revenue

$1.88B

Previous: $1.31B+43.5%
EPS (adj)

$1.16

Previous: $0.79+46.8%
Dealership Absorption Ratio

136.5%

Previous: 133.3%+2.4%
Capital Expenditures

$67.8M

Previous: $44.9M+51.2%
Free Cash Flow

$43.3M

Previous: -$61.2M+170.7%
Net Income

$98.3M

Previous: $68.6M+43.3%
Operating Income

$137M

Previous: $89.9M+52.0%
Gross Profit

$386M

Previous: $294M+31.1%
Cash & Equivalents

$201M

Previous: $148M+35.7%
Total Assets

$3.82B

Previous: $3.12B+22.5%
Stock-Based Comp

$3.77M

Previous: $3.9M-3.4%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$1.88B

Q4 2022+43.5%vs Q4 2021
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

The company expects demand to remain strong through the first half of 2023. Used truck values are expected to continue to depreciate at a higher than normal pace for at least the first half of 2023. The company is closely monitoring inflation, interest rates, the housing market, spot rates and fuel prices, which may have an impact on demand for new vehicles and aftermarket services

Tailwinds

  • Parts availability has improved significantly.
  • New truck production continues to normalize.
  • Adding technicians and aftermarket sales representatives to network.
  • Expect truck sales to remain strong through at least the first half of 2023.
  • Medium-duty truck sales revenue will keep pace with the expected industry increase during 2023 if production continues to normalize.

Headwinds

  • Supply chain issues are still a factor.
  • Expect used truck values to continue to depreciate at a higher than normal pace for at least the first half of 2023.
  • Freight rates remained low, causing weak demand for used trucks across all segments and geographies.
  • Used truck values continued to decline at a faster-than-normal rate.
  • Expect further pricing deterioration towards historical levels as new commercial vehicle production leads to additional used truck supply.

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 2022

Historical avgQ4 2022

+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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