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Dec 31, 2022
Rush Enterprises Q4 2022 Earnings Report
Rush Enterprises reported record high revenues and profitability for Q4 2022, driven by increased dealership numbers and strong demand.
Key Takeaways
Rush Enterprises reported Q4 2022 revenues of $1.9 billion and net income of $98.3 million. The company's performance was driven by strong demand for new Class 8 trucks and aftermarket parts and services. The Board declared a cash dividend of $0.21 per share.
Achieved record high revenues and profitability due to increased number of dealerships and strong demand for new Class 8 trucks and aftermarket parts and services.
Outpaced the industry in Class 8 new truck sales due to the timing of large fleet deliveries early in the year.
Grew aftermarket revenues due to strong demand resulting from a healthy freight market and continued constraints on new truck production.
Expanded technician workforce and reinforced focus on supporting national accounts with aftermarket sales team.
Rush Enterprises
Rush Enterprises
Forward Guidance
The company expects demand to remain strong through the first half of 2023. Used truck values are expected to continue to depreciate at a higher than normal pace for at least the first half of 2023. The company is closely monitoring inflation, interest rates, the housing market, spot rates and fuel prices, which may have an impact on demand for new vehicles and aftermarket services
Positive Outlook
- Parts availability has improved significantly.
- New truck production continues to normalize.
- Adding technicians and aftermarket sales representatives to network.
- Expect truck sales to remain strong through at least the first half of 2023.
- Medium-duty truck sales revenue will keep pace with the expected industry increase during 2023 if production continues to normalize.
Challenges Ahead
- Supply chain issues are still a factor.
- Expect used truck values to continue to depreciate at a higher than normal pace for at least the first half of 2023.
- Freight rates remained low, causing weak demand for used trucks across all segments and geographies.
- Used truck values continued to decline at a faster-than-normal rate.
- Expect further pricing deterioration towards historical levels as new commercial vehicle production leads to additional used truck supply.