Rush Enterprises posts decent Q1 results

Late March sales collapse a possible precursor of carnage to come, CEO says

Rush Enterprises reported decent first quarter revenue and profit but is concerned for future quarters. (Image credit: Rush Enterprises)

The nation’s largest network of commercial vehicle dealerships in North America, Rush Enterprises, Inc. (NASDAQ: RUSHA), reported 4.4% lower first quarter revenue of $1.29 billion compared to $1.35 billion a year ago.

First quarter net income was $23.1 million, or $0.62 per share, down 38% from $37.1 million, or $0.98 per diluted share a year ago.

Parts, service and collision center revenues reached $428 million and account for about 67% of gross profits.

Rush delivered 3,078 new heavy-duty trucks, 13.5% fewer year-over-year and 3,264 new medium-duty commercial vehicles, up 24.9% compared with the first quarter a year ago. Used commercial vehicles sales of 1,558 were down 15.3%.

“Given the industry-wide slowdown in new Class 8 truck sales, which began in the fourth quarter of 2019, our first quarter 2020 performance was solid,” said W.M. “Rusty” Rush, Chairman, CEO and President. “Our balance sheet is healthy, and we believe the company is well-positioned to navigate the economic and industry challenges that lie ahead.”  

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Alan Adler

Alan Adler is an award-winning journalist who worked for The Associated Press and the Detroit Free Press. He also spent two decades in domestic and international media relations and executive communications with General Motors.