The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how heavy transportation equipment stocks fared in Q2, starting with Commercial Vehicle Group (NASDAQ:CVGI).
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 13 heavy transportation equipment stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.
Weakest Q2: Commercial Vehicle Group (NASDAQ:CVGI) Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
Commercial Vehicle Group reported revenues of $229.9 million, down 12.3% year on year. This print fell short of analysts’ expectations by 3.3%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
James Ray, President and Chief Executive Officer, said, “CVG continues to drive its strategic transformation, despite second quarter results that were challenged due to multiple factors. In particular, we witnessed continued softening in the construction and agricultural end markets and reduced volumes in our new business win launches, impacting our key growth segment in Electrical Systems.”
Unsurprisingly, the stock is down 24.9% since reporting and currently trades at $3.55.
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Best Q2: Douglas Dynamics (NYSE:PLOW) Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $199.9 million, down 3.6% year on year, outperforming analysts’ expectations by 9.4%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 4% since reporting. It currently trades at $27.47.
Shyft (NASDAQ:SHYF) Notably receiving an order from FedEx (NYSE:FDX) for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $192.8 million, down 14.4% year on year, falling short of analysts’ expectations by 4.3%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 18.8% since the results and currently trades at $13.80.
Cummins (NYSE:NYSE:CMI) With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.80 billion, up 1.8% year on year, surpassing analysts’ expectations by 5.3%. Zooming out, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $292.38.
Federal Signal (NYSE:FSS) Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $490.4 million, up 10.8% year on year, in line with analysts’ expectations. Overall, it was a mixed quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ backlog sales estimates.
The stock is up 1.5% since reporting and currently trades at $95.81.
This content was originally published on Stock Story
