A Look Back at Heavy Transportation Equipment Stocks’ Q2 Earnings: Allison Transmission (NYSE:ALSN) Vs The Rest Of The Pack
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the heavy transportation equipment industry, including Allison Transmission (NYSE:ALSN) and its peers.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.
Allison Transmission (NYSE:ALSN)
Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $816 million, up 4.2% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a solid quarter for the company with a decent beat of analysts’ earnings estimates.
David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission commented, "Unprecedented demand for Class 8 vocational vehicles drove record quarterly revenue in our North America On-Highway end market, propelling second quarter revenue to a company record of $816 million. Second quarter performance was also improved by year over year increases in our Defense and Outside North America On-Highway end markets as we continue to execute and realize our growth initiatives globally."
Interestingly, the stock is up 7.5% since reporting and currently trades at $90.70.
Best Q2: Douglas Dynamics (NYSE:PLOW)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $199.9 million, down 3.6% year on year, outperforming analysts’ expectations by 9.4%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $27.86.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Commercial Vehicle Group (NASDAQ:CVGI)
Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
Commercial Vehicle Group reported revenues of $229.9 million, down 12.3% year on year, falling short of analysts’ expectations by 3.3%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 24.7% since the results and currently trades at $3.56.
Read our full analysis of Commercial Vehicle Group’s results here.
Shyft (NASDAQ:SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $192.8 million, down 14.4% year on year, falling short of analysts’ expectations by 4.3%. More broadly, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 24.4% since reporting and currently trades at $14.45.
Read our full, actionable report on Shyft here, it’s free.
Federal Signal (NYSE:FSS)
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $490.4 million, up 10.8% year on year, in line with analysts’ expectations. More broadly, it was a strong quarter for the company with a solid beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $93.65.
Read our full, actionable report on Federal Signal here, it’s free.
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