Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Commercial Vehicle Group (NASDAQ:CVGI) and the best and worst performers in the heavy transportation equipment industry.
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 13 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Luckily, heavy transportation equipment stocks have performed well with share prices up 12.8% on average since the latest earnings results.
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 $152.5 million, down 11.2% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.
James Ray, President and Chief Executive Officer, said, “In the face of ongoing lower demand in our key Construction, Agriculture, and Class 8 truck end markets, we were pleased with the resilience seen in our third quarter results. We continued to benefit from our operational efficiency improvement and right sizing our manufacturing footprint and enterprise structural cost, evidenced by the continued sequential expansion in our adjusted gross margin in the quarter, despite the lower demand environment. Furthermore, as part of our efforts to preserve margins and position CVG for an eventual end market recovery, we remain focused on reducing SG&A expenses, and we have made demonstrable progress with customers as it relates to mitigating tariff impacts. I want to sincerely thank every member of the CVG team for their commitment, resilience, and focus on execution.”
Interestingly, the stock is up 15.8% since reporting and currently trades at $1.76.
Read our full report on Commercial Vehicle Group here, it’s free.
Best Q3: Greenbrier (NYSE:GBX)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $706.1 million, down 19.4% year on year, outperforming analysts’ expectations by 7.7%. The business had a stunning quarter with a beat of analysts’ EPS and analysts’ adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.5% since reporting. It currently trades at $48.39.
Is now the time to buy Greenbrier? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Wabash (NYSE:WNC)
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 $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 25.8% since the results and currently trades at $10.46.
Read our full analysis of Wabash’s results here.
Federal Signal (NYSE:FSS)
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $555 million, up 17% year on year. This number topped analysts’ expectations by 1.9%. It was a strong quarter as it also recorded full-year EPS guidance beating analysts’ expectations and an impressive beat of analysts’ revenue estimates.
The stock is down 9.5% since reporting and currently trades at $117.39.
Read our full, actionable report on Federal Signal here, it’s free.
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 $664.4 million, up 11.1% year on year. This print surpassed analysts’ expectations by 4.5%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is up 22.5% since reporting and currently trades at $68.16.
Read our full, actionable report on REV Group here, it’s free.
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.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.