As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at heavy transportation equipment stocks, starting with PACCAR (NASDAQ: PCAR).
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 14 heavy transportation equipment stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates.
Luckily, heavy transportation equipment stocks have performed well with share prices up 32.3% on average since the latest earnings results.
PACCAR (NASDAQ: PCAR)
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $6.91 billion, down 16% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 5% since reporting and currently trades at $96.64.
Read our full report on PACCAR here, it’s free.
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, outperforming analysts’ expectations by 6.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 28.2% since reporting. It currently trades at $31.30.
Is now the time to buy Douglas Dynamics? 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 significantly and full-year EPS guidance missing analysts’ expectations significantly.
Wabash delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 13.3% since the results and currently trades at $11.28.
Read our full analysis of Wabash’s results here.
Federal Signal (NYSE: FSS)
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE: FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $463.8 million, up 9.2% year on year. This print beat analysts’ expectations by 1%. It was a strong quarter as it also put up a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 45.5% since reporting and currently trades at $110.02.
Read our full, actionable report on Federal Signal here, it’s free.
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 $358.9 million, up 3.7% year on year. This result topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
The stock is up 19.4% since reporting and currently trades at $45.
Read our full, actionable report on Blue Bird 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.
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