Jun 30, 2022

Rush Enterprises Q2 2022 Earnings Report

Achieved record quarterly revenues and EPS, driven by strong freight demand and healthy consumer spending.

Key Takeaways

Rush Enterprises reported record second quarter revenues of $1.791 billion and net income of $110.2 million, or $1.92 per diluted share. Excluding a one-time gain, adjusted net income was $100.4 million, or $1.75 per diluted share. The Board declared a cash dividend of $0.21 per share, a 10.5% increase over the prior quarter.

Revenues reached $1.791 billion and net income was $110.2 million.

Earnings per diluted share were $1.92, or $1.75 excluding a one-time gain.

The company's absorption ratio was 136.4%.

A cash dividend of $0.21 per share was declared, a 10.5% increase over the prior quarter.

Total Revenue
$1.79B
Previous year: $1.32B
+36.1%
EPS
$1.17
Previous year: $0.67
+74.6%
Dealership Absorption
136.4%
Previous year: 129.1%
+5.7%
Gross Profit
$374M
Previous year: $271M
+38.2%
Cash and Equivalents
$217M
Previous year: $316M
-31.4%
Free Cash Flow
-$37.9M
Previous year: $146M
-126.0%
Total Assets
$3.67B
Previous year: $2.91B
+26.0%

Rush Enterprises

Rush Enterprises

Rush Enterprises Revenue by Segment

Forward Guidance

Rush Enterprises believes its financial results will be strong for the remainder of 2022, citing pent-up demand and managing expenses, while cautiously monitoring inflation and rising interest rates.

Positive Outlook

  • Strong freight demand
  • Generally healthy consumer spending
  • Pent up demand for new commercial vehicles
  • Pent up demand for aftermarket parts and services
  • Managing expenses company-wide

Challenges Ahead

  • Inflation
  • Rising interest rates
  • Elevated fuel prices impacting spot market rates
  • Component parts supply chain issues impacting new truck production
  • Weak spot rates and high diesel prices impacting used truck demand