NASDAQ$RUSHA

Rush Enterprises Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and year-end results, highlighted by annual revenues of $7.9 billion and net income of $347.1 million.

Rush Enterprises reported Q4 2023 revenues of $2.0 billion and net income of $78.0 million. The company's annual revenues reached a record high, driven by strong new truck demand and aftermarket growth. A cash dividend of $0.17 per share was declared.

  • Annual revenues reached $7.9 billion with a net income of $347.1 million.
  • Q4 revenues totaled $2.0 billion, with a net income of $78.0 million.
  • The board declared a cash dividend of $0.17 per share of Class A and Class B common stock.
  • Aftermarket products and services accounted for approximately 59.5% of the Company’s total gross profits in 2023

Headline financials

Total Revenue

$2.03B

Previous: $1.88B+7.8%
EPS (adj)

$0.95

Previous: $1.16-18.1%
Dealership Absorption Ratio

130.8%

Previous: 136.5%-4.2%
Capital Expenditures

$79.8M

Previous: $67.8M+17.7%
Net Income

$78M

Previous: $98.3M-20.7%
Operating Income

$120M

Previous: $137M-12.2%
Gross Profit

$371M

Previous: $386M-3.9%
Stock-Based Comp

$5.06M

Previous: $3.77M+34.3%

Revenue & EPS history

Rush Enterprises · Revenue · Quarterly

$2.03B

Q4 2023+7.8%vs Q4 2022
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

Looking to 2024, the company expects retail sales of new Class 8 trucks to decline compared to 2023. With respect to medium-duty commercial vehicles, as production of new Class 4-7 vehicles continues to increase, we believe that demand will likely be consistent with 2023.

Tailwinds

  • Demand for medium-duty commercial vehicles is expected to be consistent with 2023 as production increases.
  • The company's focus on diversifying its customer base, along with its focus on large national accounts and its other aftermarket strategic initiatives, will allow it to gain market share
  • The company believes its financial results will outpace the industry in 2024
  • Investments made in the business and the ability to execute on strategic initiatives are proving that the company can achieve strong financial results that outpace the industry despite challenging industry conditions.
  • The company will continue to focus on its strategic initiatives, including supporting large national account customers and expanding its service technician workforce

Headwinds

  • Retail sales of new Class 8 trucks are expected to decline compared to 2023.
  • Ongoing delays from truck body companies will likely continue to impact the timing of medium-duty vehicle deliveries
  • The aftermarket industry will likely continue to face challenging operating conditions during 2024 due to excess truck capacity in the market, low freight rates and high interest rates
  • Challenging freight conditions continue to impact customers, including larger fleets.
  • The company expects aftermarket revenues to remain flat.

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 2023

Historical avgQ4 2023

+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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