Rush Enterprises Earnings: Here’s Why Investors are Not Excited Now

Rush Enterprises, Inc. (NASDAQ:RUSHA) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.12%.

Rush Enterprises, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.82% to $0.30 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Decreased 5.52% to $789.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rush Enterprises, Inc. reported adjusted EPS income of $0.30 per share. By that measure, the company missed the mean analyst estimate of $0.42. It missed the average revenue estimate of $824.98 million.

Quoting Management: “A lackluster new truck sales environment and increased overhead related to substantial investments made to support the continued growth of our organization made this a tough quarter,” said W. M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. “I recognize the additional level of commitment extended by our employees as we continue to expand our network of Rush Truck Centers and implement new technologies to ensure we provide our customers with superior service. I believe the investments we have made are necessary to the successful achievement of our long-term strategic plan and would like to thank all of our employees for their contributions to our continued growth.”

Key Stats (on next page)…

Revenue increased 4.35% from $756.79 million in the previous quarter. EPS decreased 11.76% from $0.34 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.49 and has not changed. For the current year, the average estimate has moved down from a profit of $1.78 to a profit of $1.76 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)