The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rush Enterprises beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin improved, and net margin increased.
Rush Enterprises tallied revenue of $696.4 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $673.8 million on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $463.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The one earnings estimate compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.50 for Q3 were 108% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.7%, 150 basis points worse than the prior-year quarter. Operating margin was 4.4%, 150 basis points better than the prior-year quarter. Net margin was 2.5%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $723.2 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $1.23.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rush Enterprises is outperform, with an average price target of $24.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.