Rush Enterprises, Inc. has recently released its 10-Q report, providing a detailed insight into its business operations and financial performance. Rush Enterprises operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company's network of commercial vehicle dealerships, known as Rush Truck Centers, primarily sells commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers aftermarket parts, service and repair, financing, leasing, rental services, and insurance products.
In the latest 10-Q report, Rush Enterprises discussed the Management’s Discussion and Analysis of Financial Condition and Results of Operations. The report highlighted the company's outlook, including forecasts for new U.S. Class 8 retail truck sales, new U.S. Class 4 through 7 retail commercial vehicle sales, and expectations for the sales of light-duty vehicles and used commercial vehicles in 2024. The company expects its U.S. market share of new Class 8 truck sales to range between 5.7% and 6.1% in 2024, with an estimated sale of approximately 13,000 to 14,000 new Class 8 trucks.
The report also provided a detailed analysis of the company's Results of Operations, including the percentage of total revenues from different revenue sources, cost of products sold, gross profit, operating income, and net income. For the three months ended June 30, 2024, the company reported a gross profit of 19.4% of total revenues, and net income attributable to Rush Enterprises, Inc. was 3.9% of total revenues.
Moreover, the report discussed the unit sales and revenues for new heavy-duty, new medium-duty, new light-duty, and used commercial vehicles, along with the dealership absorption ratio. The absorption ratio, a key performance indicator, is calculated by dividing the gross profit from Aftermarket Products and Services departments by the overhead expenses of all dealership departments. Rush Truck Centers achieved a 134.0% absorption ratio for the second quarter of 2024.
Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $50.65. Check out the company's full 10-Q submission here.
