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Sep 30, 2021
Rush Enterprises Q3 2021 Earnings Report
Reported strong Q3 2021 results with revenues of $1.27 billion and net income of $69.4 million.
Key Takeaways
Rush Enterprises reported strong third-quarter results with revenues of $1.27 billion and net income of $69.4 million, driven by strong demand for trucks and aftermarket products and services, as well as diligent expense management. 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 $1.27 billion, with a net income of $69.4 million.
Earnings per diluted share were $1.20.
The absorption ratio was 134.0%.
A cash dividend of $0.19 per share was declared.
Rush Enterprises
Rush Enterprises
Forward Guidance
The company expects aftermarket demand to remain strong but anticipates supply constraints to negatively impact the industry through mid-2022. New Class 8 truck sales are expected to be negatively impacted by component supply issues in Q4 2021.
Positive Outlook
- Demand for aftermarket parts and services is expected to remain strong.
- The economy is expected to remain healthy.
- The company will continue to focus on implementing parts and service strategic initiatives.
- Aftermarket performance is believed to remain strong throughout 2022.
- Used truck demand will remain strong.
Challenges Ahead
- Supply constraints may continue to negatively impact the industry through mid-2022.
- Fourth quarter aftermarket revenues will be less than third quarter revenues due to seasonal softness.
- Component supply issues will continue, pushing some new Class 8 truck deliveries into 2022.
- Limited production of new medium-duty trucks in the third quarter of 2021 had a significant negative impact on Class 4-7 new commercial vehicle sales.
- It is increasingly difficult to maintain a robust used truck inventory.