Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Rush Enterprises beat analysts’ revenue expectations by 8.8% last quarter, reporting revenues of $2.03 billion, up 1.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates.
Is Rush Enterprises a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rush Enterprises’s revenue to decline 7% year on year to $1.84 billion, a reversal from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rush Enterprises has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.1% on average.
Looking at Rush Enterprises’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GATX delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 3.5%, and Richardson Electronics reported revenues up 2.2%, topping estimates by 8.7%. GATX traded up 5.7% following the results while Richardson Electronics was down 2.5%.
Read our full analysis of GATX’s results here and Richardson Electronics’s results here.
Investors in the industrial distributors segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Rush Enterprises is up 1.3% during the same time and is heading into earnings with an average analyst price target of $61.50 (compared to the current share price of $53.51).
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