Let’s dig into the relative performance of Shyft (NASDAQ:SHYF) and its peers as we unravel the now-completed Q2 heavy transportation equipment earnings season.
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 14 heavy transportation equipment stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
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. This year has been a different story as mixed inflation signals have led to market volatility, and while some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.7% since the latest earnings results.
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. This print fell short of analysts’ expectations by 4.3%. Overall, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.
"We continued to drive our Shyft operating strategy and saw progress in the quarter despite ongoing market softness. The SV team delivered another strong financial quarter, FVS generated sequential margin improvement, and Blue Arc achieved milestones that position us for vehicle delivery later this year," said John Dunn, President and CEO.
Interestingly, the stock is up 15.9% since reporting and currently trades at $13.47.
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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 4.5% since reporting. It currently trades at $27.60.
Weakest Q2: Microvast (NASDAQ:MVST) With over 25 patents, Microvast (NASDAQ:MVST) designs, develops, and manufactures lithium-ion batteries for electric vehicles and batteries for renewable energy storage.
Microvast reported revenues of $83.68 million, up 11.6% year on year, falling short of analysts’ expectations by 4.4%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 21.8% since the results and currently trades at $0.31.
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 $8.26 billion, down 2.1% year on year, in line with analysts’ expectations. Overall, it was a solid quarter for the company with an impressive beat of analysts’ organic revenue estimates.
The stock is down 12.7% since reporting and currently trades at $95.16.
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 $2.85 billion, up 18% year on year, surpassing analysts’ expectations by 2.5%. Revenue aside, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.
Oshkosh scored the fastest revenue growth among its peers. The stock is down 9% since reporting and currently trades at $103.99.