Dj Ibd: Blue Bird Sees Relative Strength Rating Climb To 73

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Caterpillar and its peers.

Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.

The 22 heavy machinery stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.

Best Q3: Caterpillar

With its iconic yellow machinery working on construction sites, Caterpillar manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Caterpillar reported revenues of $17.64 billion, up 9.5% year on year. This print exceeded analysts’ expectations by 6.1%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

"Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments," said Caterpillar CEO Joe Creed.

Interestingly, the stock is up 9.4% since reporting and currently trades at $573.95.

REV Group

Offering the first full-electric North American fire truck, REV manufactures and sells specialty vehicles.

REV Group reported revenues of $664.4 million, up 11.1% year on year, outperforming analysts’ expectations by 4.5%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $60.80.

Weakest Q3: Wabash

With its first trailer reportedly built on two sawhorses, Wabash offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 3.5% since the results and currently trades at $8.60.

Read our full analysis of Wabash’s results here.

Blue Bird

With around a century of experience, Blue Bird is a manufacturer of school buses and complementary parts.

Blue Bird reported revenues of $409.4 million, up 16.9% year on year. This number beat analysts’ expectations by 7.7%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Blue Bird achieved the biggest analyst estimates beat among its peers. The stock is down 15.1% since reporting and currently trades at $46.60.

Read our full, actionable report on Blue Bird here, it’s free for active Edge members.

Douglas Dynamics

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics offers snow and ice equipment for the roads and sidewalks.

Douglas Dynamics reported revenues of $162.1 million, up 25.3% year on year. This print lagged analysts' expectations by 0.7%. Zooming out, it was actually a strong quarter as it put up an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

Douglas Dynamics delivered the fastest revenue growth among its peers. The stock is up 10% since reporting and currently trades at $32.66.

Read our full, actionable report on Douglas Dynamics here, it’s free for active Edge members.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the heavy transportation equipment industry, including Wabash 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 Q3. As a group, revenues missed analysts’ consensus estimates by 1%.

In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.

Weakest Q3: Wabash

With its first trailer reportedly built on two sawhorses, Wabash offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

Wabash delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.8% since reporting and currently trades at $8.63.

Read our full report on Wabash here, it’s free for active Edge members.

Best Q3: REV Group

Offering the first full-electric North American fire truck, REV manufactures and sells specialty vehicles.

REV Group reported revenues of $664.4 million, up 11.1% year on year, outperforming analysts’ expectations by 4.5%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 10.4% since reporting. It currently trades at $61.42.

Commercial Vehicle Group

Formed from a partnership between two distinct companies, CVG offers various components used in vehicles and systems used in warehouses.

Commercial Vehicle Group reported revenues of $152.5 million, down 11.2% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 5% since the results and currently trades at $1.44.

Read our full analysis of Commercial Vehicle Group’s results here.

Blue Bird

With around a century of experience, Blue Bird is a manufacturer of school buses and complementary parts.

Blue Bird reported revenues of $409.4 million, up 16.9% year on year. This number topped analysts’ expectations by 7.7%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Blue Bird achieved the biggest analyst estimates beat among its peers. The stock is down 7.7% since reporting and currently trades at $50.65.

Read our full, actionable report on Blue Bird here, it’s free for active Edge members.

Greenbrier

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier supplies the freight rail transportation industry with railcars and related services.

Greenbrier reported revenues of $759.5 million, down 27.9% year on year. This print came in 0.6% below analysts' expectations. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Greenbrier delivered the highest full-year guidance raise among its peers. The stock is up 2.8% since reporting and currently trades at $46.52.

Read our full, actionable report on Greenbrier here, it’s free for active Edge members.