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 Shyft (NASDAQ:SHYF).
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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 1.2%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 18.5% on average since the latest earnings results.
Shyft (NASDAQ:SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $204.6 million, up 3.4% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"We are pleased with our start to the year and the team's ability to deliver better than expected financial results," said John Dunn, President and CEO.
Shyft achieved the highest full-year guidance raise of the whole group. The stock is up 59.8% since reporting and currently trades at $11.65.
Is now the time to buy Shyft? Access our full analysis of the earnings results 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 biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 17.4% since reporting. It currently trades at $28.68.
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.
Interestingly, the stock is up 4% since the results and currently trades at $10.36.
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 number topped analysts’ expectations by 1%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 31.8% since reporting and currently trades at $99.64.
Read our full, actionable report on Federal Signal here, it’s free.
REV Group (NYSE:REVG)
Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $629.1 million, up 2% year on year. This print beat analysts’ expectations by 5.4%. It was a stunning quarter as it also logged an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 18.8% since reporting and currently trades at $44.23.
Read our full, actionable report on REV Group here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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