As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the heavy transportation equipment industry, including Cummins (NYSE:CMI) 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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.9% since the latest earnings results.
Cummins (NYSE:CMI)
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 $8.45 billion, down 1.1% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Engine revenue estimates.
“Cummins delivered strong operational results in the fourth quarter and achieved record full year revenues, net income, EBITDA and EPS, despite a decline in heavy duty truck demand in North America,” said Jennifer Rumsey, Chair and CEO of Cummins.
The stock is down 6.3% since reporting and currently trades at $326.15.
Is now the time to buy Cummins? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $29.55.
Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Wabtec (NYSE:WAB)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.58 billion, up 2.3% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 12.5% since the results and currently trades at $182.
Read our full analysis of Wabtec’s results here.
Commercial Vehicle Group (NASDAQ:CVGI)
Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
Commercial Vehicle Group reported revenues of $163.3 million, down 26.8% year on year. This print surpassed analysts’ expectations by 3.1%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is down 17% since reporting and currently trades at $1.56.
Read our full, actionable report on Commercial Vehicle Group here, it’s free.
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 $201.4 million, flat year on year. This number came in 4.3% below analysts' expectations. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ Fleet Vehicles revenue estimates.
The stock is down 24.7% since reporting and currently trades at $9.44.
Read our full, actionable report on Shyft here, it’s free.
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