Spotting Winners: Shyft (NASDAQ:SHYF) And Heavy Transportation Equipment Stocks In Q3
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the heavy transportation equipment industry, including Shyft (NASDAQ:SHYF) and its peers.
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 mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.2%.
While some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% 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 $194.1 million, down 3.6% year on year. This print fell short of analysts’ expectations by 6.6%. Overall, it was a slower quarter for the company with a miss of analysts’ adjusted operating income estimates.
"We are improving performance by the execution of our operational framework as we achieved adjusted EBITDA growth of 31% year-over-year. The Shyft team is highly engaged in driving operational and commercial improvements and we are seeing it in our results," said John Dunn, President and CEO.
Shyft Total Revenue
Unsurprisingly, the stock is down 2% since reporting and currently trades at $11.50.
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.46 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Cummins Total Revenue
The market seems happy with the results as the stock is up 9% since reporting. It currently trades at $354.99.
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 $464 million, down 26.7% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 2.2% since the results and currently trades at $16.69.
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $350.2 million, up 15.6% year on year. This number surpassed analysts’ expectations by 1.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EBITDA estimates.
Blue Bird scored the fastest revenue growth among its peers. The stock is down 8.3% since reporting and currently trades at $39.50.
Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America.
Trinity reported revenues of $798.8 million, down 2.7% year on year. This result surpassed analysts’ expectations by 14.8%. However, it was a slower quarter as it recorded a significant miss of analysts’ backlog estimates and a miss of analysts’ EPS estimates.
Trinity pulled off the biggest analyst estimates beat among its peers. The stock is down 1.6% since reporting and currently trades at $35.17.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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