School bus company Blue Bird (NASDAQ: BLBD) will be reporting earnings this Wednesday after market hours. Here’s what to look for.
Blue Bird beat analysts’ revenue expectations last quarter, reporting revenues of $352.6 million, down 1.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Blue Bird a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Blue Bird’s revenue to grow 25.2% year on year, improving from the 19.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Blue Bird has a history of exceeding Wall Street’s expectations.
Looking at Blue Bird’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wabash’s revenues decreased 9.1% year on year, beating analysts’ expectations by 3.6%, and Oshkosh reported revenues up 6.7%, topping estimates by 3.3%. Wabash traded down 6.8% following the results while Oshkosh was also down 7.8%.
Read our full analysis of Wabash’s results here and Oshkosh’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the heavy transportation equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Blue Bird is down 3.3% during the same time and is heading into earnings with an average analyst price target of $84.50 (compared to the current share price of $75.35).
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