Wrapping up Q1 earnings, we look at the numbers and key takeaways for the heavy transportation equipment stocks, including Blue Bird (NASDAQ:BLBD) and its peers.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 11 heavy transportation equipment stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 2.2%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but heavy transportation equipment stocks have shown resilience, with share prices up 5.6% on average since the previous earnings results.
Best Q1: Blue Bird (NASDAQ:BLBD) With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $345.9 million, up 15.4% year on year, exceeding analysts' expectations by 15.9%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
"I am incredibly proud of our team’s achievements in delivering another outstanding result in the second quarter,” said Phil Horlock, CEO of Blue Bird Corporation.
Blue Bird scored the biggest analyst estimates beat of the whole group. The stock is up 34% since reporting and currently trades at $50.32.
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Wabtec (NYSE:WAB) Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.
Wabtec reported revenues of $2.50 billion, up 13.8% year on year, outperforming analysts' expectations by 4.4%. It was a stunning quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.
Wabtec achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $167.34.
Weakest Q1: Wabash (NYSE:WNC) With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $515.3 million, down 17% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings and backlog sales estimates.
As expected, the stock is down 9.3% since the results and currently trades at $23.34.
PACCAR (NASDAQ:PCAR) Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $8.24 billion, up 2.3% year on year, in line with analysts' expectations. Overall, it was a very strong quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is down 4% since reporting and currently trades at $109.04.
Oshkosh (NYSE:OSK) Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Oshkosh reported revenues of $2.54 billion, up 12.2% year on year, surpassing analysts' expectations by 2.2%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' backlog sales estimates.
The stock is down 8.3% since reporting and currently trades at $111.26.
This content was originally published on Stock Story
