Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Douglas Dynamics (NYSE: PLOW) 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 13 heavy transportation equipment stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.7%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 16.4% on average since the latest earnings results.
Best Q1: 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 $115.1 million, up 20.3% year on year. This print exceeded analysts’ expectations by 6.7%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 13.3% since reporting and currently trades at $27.66.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Shyft (NASDAQ: SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ: SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $204.6 million, up 3.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Shyft delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 49.2% since reporting. It currently trades at $10.88.
Is now the time to buy Shyft? Access our full analysis of the earnings results here, it’s free.
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 $380.9 million, down 26.1% year on year, falling short of analysts’ expectations by 7.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 8% since the results and currently trades at $9.16.
Read our full analysis of Wabash’s results here.
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 $169.8 million, down 12.8% year on year. This number beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 67.6% since reporting and currently trades at $1.48.
Read our full, actionable report on Commercial Vehicle Group here, it’s free.
Cummins (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 $8.17 billion, down 2.7% year on year. This result topped analysts’ expectations by 0.6%. It was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 8.2% since reporting and currently trades at $324.47.
Read our full, actionable report on Cummins here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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