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Blue Bird Corporation Posts Mixed Q2 Results

Blue Bird Corporation (NASDAQ: BLBD) reported mixed fiscal Q2 results, topping revenue estimates but failing to meet earnings expectations.

Despite the earnings miss, shares of the leader in electric and low-emission school buses gained almost 1% on May 12 on the FY2022 revenues outlook that still remained higher than the street’s expectations.

Q1 Numbers

The revenue of $207.7 million in the quarter was well ahead of the $150.65 million consensus and higher by $43 million than the revenues reported a year earlier.

However, the company reported an adjusted loss of $0.31 per share, which fell far short of the street’s estimated loss of $0.10.

Notably, the order backlog remained strong at a record 6,600 buses, equivalent to $700 million.

FY2022 Outlook

Based on delayed recovery in the supply base in the second half of the fiscal year due to Russia’s war in Ukraine and COVID-related lockdowns in China, management modified financial guidance for FY2021.

The company now forecasts FY2022 revenues to be in the range of $800 million to $900 million, still higher than the consensus estimate of $751 million. Adjusted EBITDA is likely to range between $20 million and $30 million.

CEO’s Comments

Sharing his optimistic views, Blue Bird Corporation CEO, Matthew Stevenson, commented, “Blue Bird showcased at ACT Expo a flexible Class 5-6 electric chassis which will enable a broad range of zero-emission vehicles, including last-mile delivery step vans, motorhomes, and other specialty vehicles. With a market size of more than 30,000 units we will effectively double our total addressable market.”

Wall Street’s Take

The stock has picked up a rating from one analyst in the past three months. Last month, Roth Capital analyst Craig Irwin reiterated a Buy rating on the stock with a price target of $29 (104.8% upside potential).

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on BLBD stock, compared to a sector average of 68%.

Conclusion

Positively, the company expects to see gradual relief begin in fiscal Q4 as fully-priced orders begin to be delivered, though there is still uncertainty on the supply disruptions front.

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