Q2 Earnings Outperformers: Blue Bird (NASDAQ:BLBD) And The Rest Of The Heavy Transportation Equipment Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at heavy transportation equipment stocks, starting with Blue Bird (NASDAQ:BLBD).
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 strong Q2. As a group, revenues were in line with analysts’ consensus estimates.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
While some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.
Blue Bird (NASDAQ:BLBD)
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $333.4 million, up 13.3% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
“I am incredibly proud of our team’s achievements in delivering another outstanding result and record profit in the third quarter,” said Phil Horlock, CEO of Blue Bird Corporation.
Unsurprisingly, the stock is down 7.5% since reporting and currently trades at $44.88.
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%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $26.85.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 34.2% since the results and currently trades at $3.11.
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. This result came in 4.3% below analysts' expectations. In spite of that, it was a strong quarter as it put up an impressive beat of analysts’ earnings estimates.
The stock is up 6.5% since reporting and currently trades at $12.37.
Read our full, actionable report on Shyft here, it’s free.
PACCAR (NASDAQ:PCAR)
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $8.26 billion, down 2.1% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates.
The stock is down 3% since reporting and currently trades at $105.80.
Read our full, actionable report on PACCAR here, it’s free.
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