Rush Enterprises Q3 2021 Earnings Report
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
Rush Enterprises Revenue by Segment
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.