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Jun 30, 2021
Rush Enterprises Q2 2021 Earnings Report
Achieved strong financial results driven by economic recovery and effective expense management, but faced supply chain challenges.
Key Takeaways
Rush Enterprises reported revenues of $1.316 billion and net income of $58.0 million, or $1.00 per diluted share, for the quarter ended June 30, 2021, compared to revenues of $1.003 billion and net income of $16.8 million, or $0.30 per diluted share, in the quarter ended June 30, 2020. The company's Board of Directors declared a cash dividend of $0.19 per share of Class A and Class B Common Stock.
Revenues reached $1.316 billion with net income at $58.0 million.
Earnings per diluted share were reported at $1.00.
The company's absorption ratio was 129.1%.
A cash dividend of $0.19 per share was declared, marking a 5.6% increase over the prior quarterly dividend.
Forward Guidance
Rush Enterprises anticipates strong financial results for the remainder of 2021, navigating supply constraints and strong customer demand while managing expenses and adding personnel.
Positive Outlook
- The company believes its financial results will be strong for the remainder of 2021.
- The company will continue to manage expenses company-wide.
- The company will continue adding personnel to meet market demand.
- The economy is expected to remain strong.
- Aftermarket revenues are expected to continue to increase for the remainder of 2021.
Challenges Ahead
- Component supply chain issues are the biggest concern in the industry.
- The timing of some new truck deliveries is stretching well into 2022.
- Industry-wide aftermarket sales have also been impacted by supply constraints.
- Class 4-7 truck production capabilities will not improve as quickly as Class 8 truck manufacturing, which will negatively impact Class 4-7 truck sales in the third quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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