Overview of Rush Enterprises (RUSHA) 2nd quarter 2021 earnings report
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Category: Rush Enterprises (RUSHA)
Date: 21 July 2021 Stock price of Rush Enterprises: $45.40 Market Capital of Rush Enterprises: $2.46 billion We take a look at the 2nd quarter 2021 earnings report of Rush Enterprises (RUSHA) the premier solutions provider to the commercial vehicle industry. For the quarter the group reported revenues of $1.31 billion and net income of $58 million.
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We are proud of our team for achieving impressive financial results in the second quarter, which were largely driven by the continued nationwide economic recovery and widespread activity throughout most market segments we support - W.M. Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. "
More About Rush Enterprises (RUSH)
Rush Enterprises, Inc. is the premier solutions provider to the commercial vehicle industry. The Company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 100 dealership locations in 22 states. These vehicle centers, strategically located in high traffic areas on or near major highways throughout the United States, represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, IC Bus and Blue Bird. They offer an integrated approach to meeting customer needs — from sales of new and used vehicles to aftermarket parts, service and collision center operations plus financing, insurance, leasing and rental. Rush Enterprises' operations also provide vehicle upfitting, CNG fuel systems and vehicle telematics products
Overview of Rush Enterprises 2nd quarter 2021 earnings report
- Revenues of $1.316 billion, net income of $58.0 million
- Earnings per diluted share of $1.00
- Absorption ratio 129.1%
- Strong financial results due largely to economic recovery; supply chain issues continue to impact aftermarket sales and new truck availability
- Board declares cash dividend of $0.19 per share of Class A and Class B common stock, increasing dividend by 5.6% over prior quarterly dividend
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Rush Enterprises management commentary on their 2nd quarter 2020 earnings
SAN ANTONIO, July 20, 2021 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that for the quarter ended June 30, 2021, the Company achieved revenues of $1.316 billion and net income of $58.0 million, or $1.00 per diluted share, compared with revenues of $1.003 billion and net income of $16.8 million, or $0.30 per diluted share, in the quarter ended June 30, 2020. Additionally, the Company’s Board of Directors declared a cash dividend of $0.19 per share of Class A and Class B Common Stock, to be paid on September 10, 2021, to all shareholders of record as of August 10, 2021.
“We are proud of our team for achieving impressive financial results in the second quarter, which were largely driven by the continued nationwide economic recovery and widespread activity throughout most market segments we support,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. “In addition to healthy demand for new and used trucks and aftermarket products and services resulting from the continued economic recovery, our continued focus on expense management also contributed to our strong results this quarter,” he added.
“We are proud of our team for achieving impressive financial results in the second quarter, which were largely driven by the continued nationwide economic recovery and widespread activity throughout most market segments we support,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. “In addition to healthy demand for new and used trucks and aftermarket products and services resulting from the continued economic recovery, our continued focus on expense management also contributed to our strong results this quarter,” he added.
“Right now, component supply chain issues are the biggest concern in our industry, as they are directly affecting new truck production, with the timing of some new truck deliveries now stretching well into 2022. However, demand remains strong, and manufacturers plan to increase production as component parts become more readily available. Industry-wide aftermarket sales have also been impacted by supply constraints, but we believe our parts inventory management has mitigated those impacts on our business and we expect our aftermarket sales will continue to improve throughout 2021,” said Rush.
“Our Board of Directors approved a $0.01 increase in our quarterly cash dividend, our fourth increase since we announced our intent to begin paying a quarterly cash dividend in July 2018 as part of our capital allocation strategy. This dividend increase represents a 5.6% increase over the first quarter of 2021 dividend and is further evidence of our intent to increase the dividend on an annual basis, although future declarations of dividends are subject to approval by the Company’s Board of Directors and may be adjusted as business needs or market conditions change,” explained Rush. “We believe our financial results will be strong for the remainder of 2021 as we continue to navigate this unusual market marked by both unprecedented supply constraints and strong customer demand. We will continue to manage expenses company-wide, while we continue adding personnel to meet market demand,” Rush said. “It is important that I recognize our employees for their steadfast commitment to our company and support of our customers, which allowed us to have such a great quarter,” said Rush.
“Our Board of Directors approved a $0.01 increase in our quarterly cash dividend, our fourth increase since we announced our intent to begin paying a quarterly cash dividend in July 2018 as part of our capital allocation strategy. This dividend increase represents a 5.6% increase over the first quarter of 2021 dividend and is further evidence of our intent to increase the dividend on an annual basis, although future declarations of dividends are subject to approval by the Company’s Board of Directors and may be adjusted as business needs or market conditions change,” explained Rush. “We believe our financial results will be strong for the remainder of 2021 as we continue to navigate this unusual market marked by both unprecedented supply constraints and strong customer demand. We will continue to manage expenses company-wide, while we continue adding personnel to meet market demand,” Rush said. “It is important that I recognize our employees for their steadfast commitment to our company and support of our customers, which allowed us to have such a great quarter,” said Rush.
Rush Enterprises (RUSHA) stock price chart over the last 5 years
The image below shows the stock price history of Rush Enterprises over the last 5 years. And its been a very good time for Rush stockholders with the stock increasing by 196.3% over the last 5 years.
The stock of Rush is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Rush Enterprises stock is positive at this point in time.
The stock of Rush is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Rush Enterprises stock is positive at this point in time.
Rush Enterprises (RUSHA) stock price chart over the last 5 years
Latest stock valuation of Rush Enterprises
So what is Rush Enterprises stock worth based on their 2nd quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Travelers Companies at $56.70 a stock.
We therefore believe the stock of Rush Enterprises is undervalued at its current price of $45.40
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $56.70, thus a good entry point into Rush Enterprises would be at $51 or below.
We expect the stock of Rush Enterprises to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. We therefore rate the stock of Rush Enterprises as a buy
We therefore believe the stock of Rush Enterprises is undervalued at its current price of $45.40
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $56.70, thus a good entry point into Rush Enterprises would be at $51 or below.
We expect the stock of Rush Enterprises to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. We therefore rate the stock of Rush Enterprises as a buy
Next earnings release of Rush Enterprises
It is expected that Rush Enterprises will release their 3rd quarter 2021 earnings report in late October 2021
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