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Mar 31, 2020
Rush Enterprises Q1 2020 Earnings Report
Achieved revenues of $1.287 billion and net income of $23.1 million.
Key Takeaways
Rush Enterprises reported revenues of $1.287 billion and net income of $23.1 million, or $0.62 per diluted share, for the quarter ended March 31, 2020. The company's Board of Directors declared a cash dividend of $0.13 per share of Class A and Class B Common Stock.
Revenues were $1.287 billion, with a net income of $23.1 million.
Earnings per diluted share were $0.62.
The absorption ratio was 114.3%.
A cash dividend of $0.13 per share of Class A and Class B common stock was declared.
Forward Guidance
The company expects that the negative impact on revenues and business in general will be substantial for the foreseeable future due to the COVID-19 pandemic. The outlook for the remainder of the year is uncertain due to the impact of the COVID-19 pandemic.
Positive Outlook
- Rush Truck Centers are classified as “essential businesses” and have remained fully operational across the Company’s dealership network
- Parts supply chain has remained uninterrupted to-date
- The company increased parts inventories at all stores to support an estimated extra 30 days of demand
- Cash position remains strong at $138 million
- The company renewed a $100 million line of credit for another two years.
Challenges Ahead
- The effects of the COVID-19 pandemic on our Company began late in the first quarter impacting only the last few weeks of March
- Customers are delaying purchases due to economic uncertainty
- Temporary production suspensions lead to questions about availability of new inventory
Historical Earnings Impact
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Avg. Return Before/After Earnings
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