School bus company Blue Bird (NASDAQ: BLBD) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
Blue Bird beat analysts’ revenue expectations last quarter, reporting revenues of $333.1 million, up 6.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income 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 decline 7.7% year on year, a reversal from the 3.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Douglas Dynamics delivered year-on-year revenue growth of 19.8%, beating analysts’ expectations by 3.4%, and Federal Signal reported revenues up 34.9%, topping estimates by 8%. Federal Signal traded up 10.2% following the results.
Read our full analysis of Douglas Dynamics’s results here and Federal Signal’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 7.6% on average over the last month. Blue Bird is up 7.7% during the same time and is heading into earnings with an average analyst price target of $69.29 (compared to the current share price of $61.87).
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