Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Blue Bird (NASDAQ: BLBD) and the best and worst performers in the heavy transportation equipment industry.
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 12 heavy transportation equipment stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.4%.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
Blue Bird (NASDAQ: BLBD)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $398 million, up 19.4% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EBITDA estimates.
“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit,” said John Wyskiel, President & CEO of Blue Bird Corporation.
Blue Bird pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 25.9% since reporting and currently trades at $55.64.
Best Q2: 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 $8.64 billion, down 1.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $396.35.
Is now the time to buy Cummins? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Trinity (NYSE: TRN)
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Trinity reported revenues of $506.2 million, down 39.8% year on year, falling short of analysts’ expectations by 13.3%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Trinity delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 11.5% since the results and currently trades at $27.87.
Read our full analysis of Trinity’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 $172 million, down 11.2% year on year. This result topped analysts’ expectations by 6.4%. It was a strong quarter as it also logged full-year EBITDA guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The stock is down 2.2% since reporting and currently trades at $1.82.
Read our full, actionable report on Commercial Vehicle Group here, it’s free.
Greenbrier (NYSE: GBX)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $842.7 million, up 2.7% year on year. This print beat analysts’ expectations by 7.3%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.
Greenbrier scored the biggest analyst estimates beat among its peers. The stock is down 1.5% since reporting and currently trades at $46.33.
Read our full, actionable report on Greenbrier here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
