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Sep 30, 2022
Rush Enterprises Q3 2022 Earnings Report
Achieved strong financial results driven by healthy demand for commercial vehicles and aftermarket services.
Key Takeaways
Rush Enterprises reported revenues of $1.86 billion and net income of $90.4 million, or $1.59 per diluted share, for the third quarter ended September 30, 2022. The company's Board of Directors declared a cash dividend of $0.21 per share of Class A and Class B common stock.
Revenues reached $1.86 billion with a net income of $90.4 million.
Earnings per diluted share amounted to $1.59.
The absorption ratio was 136.2%.
A cash dividend of $0.21 per share of Class A and Class B common stock was declared.
Rush Enterprises
Rush Enterprises
Rush Enterprises Revenue by Segment
Forward Guidance
Rush anticipates strong financial results for the remainder of 2022, driven by disciplined expense management and strategic aftermarket initiatives.
Positive Outlook
- Strong demand for aftermarket services is expected to continue.
- New Class 8 truck production is anticipated to increase.
- The company's backlog remains strong.
- Strategic initiatives are expected to result in aftermarket results substantially outperforming the industry.
- Parts supply is beginning to catch up to the needs of the market.
Challenges Ahead
- Inflation and rising interest rates are beginning to negatively impact consumer spending.
- Rising interest rates, soft spot rates, and elevated fuel prices are negatively impacting smaller carriers.
- Used truck values have declined significantly since their peak.
- Medium-duty commercial vehicle production is expected to remain constrained.
- Continued softness in used truck demand is expected in the fourth quarter.