Yahoo Finance Results: Rush Enterprises, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Shareholders might have noticed that Rush Enterprises, Inc. (NASDAQ:RUSH.A) filed its quarterly result this time last week. The early response was not positive, with shares down 4.0% to US$46.76 in the past week. Revenues were US$1.9b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.88 were also better than expected, beating analyst predictions by 14%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Rush Enterprises
Taking into account the latest results, the current consensus, from the dual analysts covering Rush Enterprises, is for revenues of US$7.27b in 2024. This implies a discernible 7.8% reduction in Rush Enterprises' revenue over the past 12 months. Statutory earnings per share are forecast to crater 29% to US$2.98 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.28b and earnings per share (EPS) of US$2.88 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$58.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. It's pretty clear that Rush Enterprises' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Rush Enterprises' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$58.50, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Rush Enterprises .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
