Loading...
•
Mar 31, 2024
Rush Enterprises Q1 2024 Earnings Report
Rush Enterprises reported first quarter 2024 results, impacted by challenging market conditions affecting Class 8 new truck sales and overall financial performance.
Key Takeaways
Rush Enterprises reported revenues of $1.872 billion and net income of $71.6 million, or $0.88 per diluted share for the quarter ended March 31, 2024. The results were impacted by a decline in new Class 8 truck sales due to market conditions and persistent low freight rates and high interest rates.
Revenues reached $1.9 billion with a net income of $71.6 million.
Earnings per diluted share were reported at $0.88.
The company faced challenging market conditions that impacted Class 8 new truck sales.
The absorption ratio was 130.1%.
Rush Enterprises
Rush Enterprises
Rush Enterprises Revenue by Segment
Revenue by Segment
New and Used Commercial Vehicle Sales Revenue
CapyFin.comAftermarket Products and Services Sales Revenue
CapyFin.comLease and Rental Sales Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company expects new Class 8 and Class 4-7 truck sales to improve in the second quarter compared to the first quarter, and anticipates demand to remain steady for new Class 4-7 trucks for the remainder of the year. Difficult operating conditions are likely to continue in the aftermarket, but the company expects some normal seasonal lift in the warmer months, as well as strong demand from vocational customers throughout the year.
Positive Outlook
- New Class 8 and new Class 4-7 truck sales are expected to improve in the second quarter compared to the first quarter.
- Demand should remain steady for new Class 4-7 trucks for the remainder of the year.
- Some normal seasonal lift in aftermarket is expected in the warmer months.
- Strong demand from vocational customers is expected throughout the year.
- The company believes they are well positioned to take advantages of sales opportunities that may present themselves in the third and fourth quarters
Challenges Ahead
- Over-the-road carriers continue to be plagued by challenging economic factors and the current freight recession, which is expected to extend into at least late 2024.
- Difficult operating conditions are likely to continue in the aftermarket.
- Uncertainty regarding inflation and interest rates.
- Uncertainty regarding the timing of a recovery in freight rates.
- Production issues with body companies are currently delaying new truck deliveries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income