Yahoo Finance Unpacking Q1 Earnings: Rush Enterprises (NASDAQ:RUSHA) In The Context Of Other Vehicle Parts Distributors Stocks
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the vehicle parts distributors stocks, including Rush Enterprises (NASDAQ:RUSHA) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Transportation parts distributors that boast reliable selection in sometimes specialized areas combined and quickly deliver products to customers can benefit from this theme. Additionally, distributors who earn meaningful revenue streams from aftermarket products can enjoy more steady top-line trends and higher margins. But like the broader industrials sector, transportation parts distributors are also at the whim of economic cycles that impact capital spending, transportation volumes, and demand for discretionary parts and components.
The 4 vehicle parts distributors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.7%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but vehicle parts distributors stocks have performed well, with the share prices up 12.4% on average since the previous earnings results.
Rush Enterprises (NASDAQ:RUSHA)
Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Rush Enterprises reported revenues of $1.87 billion, down 2.1% year on year, in line with analysts' expectations. Overall, it was an ok quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' Vehicles revenue estimates.
“As we expected, with new Class 8 truck production having caught up to the pent-up market demand and persistent low freight rates and high interest rates, we experienced a decline in our new Class 8 truck sales in the first quarter,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer, and President of Rush Enterprises.
Rush Enterprises delivered the slowest revenue growth of the whole group. The stock is flat since reporting and currently trades at $48.96.
Is now the time to buy Rush Enterprises? Access our full analysis of the earnings results here, it's free.
Best Q1: GATX (NYSE:GATX)
Originally founded to ship beer, GATX (NYSE:GATX) provides leasing and management services for railcars and other transportation assets globally.
GATX reported revenues of $379.9 million, up 12.1% year on year, outperforming analysts' expectations by 1%. It was a very strong quarter for the company with a solid beat of analysts' earnings estimates.
GATX achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.9% since reporting. It currently trades at $148.17.
Is now the time to buy GATX? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Air Lease (NYSE:AL)
Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.
Air Lease reported revenues of $663.3 million, up 4.3% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Air Lease posted the weakest performance against analyst estimates in the group. As expected, the stock is down 4% since the results and currently trades at $49.51.
Read our full analysis of Air Lease's results here.
FTAI Aviation (NASDAQ:FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s aircrafts, FTAI Aviation (NASDAQ:FTAI) provides aircraft and engine leasing as well as the maintenance and repair of these products.
FTAI Aviation reported revenues of $326.7 million, up 11.6% year on year, surpassing analysts' expectations by 7.9%. Overall, it was a mixed quarter for the company.
FTAI Aviation pulled off the biggest analyst estimates beat among its peers. The stock is up 40.2% since reporting and currently trades at $102.80.
Read our full, actionable report on FTAI Aviation here, it's free.
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