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Jun 30, 2024
Rush Enterprises Q2 2024 Earnings Report
Rush Enterprises reported a decrease in net income despite an increase in revenue due to challenging market conditions impacting aftermarket sales.
Key Takeaways
Rush Enterprises reported a revenue increase of 1.2% to $2.027 billion for Q2 2024, but net income decreased to $78.7 million, or $0.97 per diluted share, compared to $98.3 million, or $1.17 per diluted share, in Q2 2023. The company declared a cash dividend of $0.18 per share, a 5.9% increase over the prior quarter. The results were impacted by weak demand for Class 8 trucks, aftermarket parts, and services due to the freight recession and high interest rates.
Revenues increased by 1.2% year-over-year to $2.027 billion.
Net income decreased from $98.3 million to $78.7 million, with EPS down from $1.17 to $0.97.
Aftermarket products and services revenue decreased by 3.6% to $627.4 million.
The company increased its quarterly cash dividend by 5.9% to $0.18 per share.
Revenue by Segment
Forward Guidance
The company expects the freight recession to continue through the remainder of the year, with no meaningful recovery in freight rates anticipated until 2025. New Class 8 truck sales are expected to soften in Q3, while Class 4-7 commercial vehicle sales are expected to remain steady. The company anticipates commercial vehicle sales will keep pace with, if not outperform, the market.
Positive Outlook
- Expense reductions implemented in Q2 to mitigate expected revenue decrease.
- Diverse customer base and focus on strategic initiatives will help manage the challenging market cycle.
- Confidence in the professional salesforce to take advantage of sales opportunities.
- Expect vocational sales to remain strong in the third quarter.
- Executed well on used truck pricing and inventory strategies.
Challenges Ahead
- Freight recession expected to continue through the remainder of the year.
- No meaningful recovery in freight rates anticipated until 2025.
- Difficult operating conditions expected to continue for the near term.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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