Rush Enterprises reports Q2 EPS $1.75, consensus $1.48

Reports Q2 revenue $2B, consensus $ $1.91B.Strong revenues largely driven by continued demand for new commercial vehicles and ongoing focus on national accounts and strategic initiatives. “We are proud of our strong financial results this quarter, which were largely driven by continued strong demand for new Class 8 and Class 4-7 commercial vehicles, as well as by strong aftermarket demand from large national accounts and vocational fleets,” said Rush. “However, over-the-road customers, which is our largest customer segment, are dealing with significant pressure from high interest rates, low freight rates and depressed used truck values. These difficult industry conditions are particularly tough on small over-the-road carriers and have limited overall aftermarket growth in the commercial vehicle industry. Despite a difficult operating environment, our efforts to consistently add technicians to our network over the past two years and our strategic focus on growing our national account customer base have enabled us to continue to achieve strong financial results,” he said. “Supply constraints continue to negatively impact new truck production, and coupled with supply issues from body companies, may impact new truck deliveries in the third quarter. However, we expect that production will continue to normalize, and demand for new commercial vehicles will remain strong this year. Used truck values continued to depreciate in the second quarter, but the rate of decline began to slow. We continue to add technicians to our network, which is enabling us to expand our mobile service offerings and offer better support to our large fleet customers. We will continue to closely monitor economic factors, including contract and spot rates, fuel prices, interest rates, and new housing construction, each of which could impact truck and aftermarket demand through the remainder of the year, particularly with respect to small carriers. That said, we are confident that our focus on operational excellence and the technological and process improvements we have put in place over the past few years will help us achieve strong financial results in 2023,” Rush said. “As always, I would like to thank our employees for their hard work, which enables us to provide superior service to our customers and achieve our strategic goals,” Rush added.