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Jun 30, 2023
Rush Enterprises Q2 2023 Earnings Report
Rush Enterprises reported strong second-quarter results, driven by continued demand for new commercial vehicles and strategic aftermarket initiatives. The board declared a three-for-two stock split and a post-stock split cash dividend of $0.17 per share.
Key Takeaways
Rush Enterprises reported revenues of $2.003 billion and net income of $98.3 million, or $1.75 per diluted share, for the quarter ended June 30, 2023. The results were driven by strong demand for new commercial vehicles and aftermarket services, although over-the-road customers faced pressure from economic factors.
Revenues reached $2.003 billion, with a net income of $98.3 million.
Earnings per diluted share were reported at $1.75.
The absorption ratio was 139.7%.
A three-for-two stock split was declared, along with a post-stock split cash dividend of $0.17 per share.
Rush Enterprises
Rush Enterprises
Forward Guidance
The company expects new Class 8 truck sales to be consistent with the second quarter results. They also anticipate aftermarket growth will continue to moderate throughout the remainder of 2023.
Positive Outlook
- Production will continue to normalize.
- Demand for new commercial vehicles will remain strong this year.
- Rental utilization rates are still at historically high levels and are expected to remain strong through the rest of the year.
- Focus on achieving operational efficiencies and commitment to long-term strategic initiatives.
- Strong pent-up demand for medium-duty vehicles remains.
Challenges Ahead
- Supply constraints continue to negatively impact new truck production.
- Supply issues from body companies may impact new truck deliveries in the third quarter.
- Used truck demand and values will remain low through 2023.
- Freight rates are not expected to improve this year.
- The age of the lease and rental fleet may cause operating costs to increase somewhat.