Blue Bird expects strong Q3 results driven by demand for school buses and electric vehicles

From Nasdaq: 2024-08-05 10:56:00

Blue Bird Corporation is set to announce fiscal third-quarter 2024 results, with earnings estimated at 50 cents per share and revenues at $330 million. Analysts predict a 13.6% increase in earnings and a 12.14% increase in quarterly revenues year-over-year. Blue Bird anticipates a rise in revenues of 17.3% for the current year.

The strong demand for school buses is expected to drive Blue Bird Corporation’s Q3 results, with over 5,900 units in its order backlog at the end of the second quarter. The company is seeing growth in deliveries of electric-powered buses, with a backlog of around 500 electric school buses. Policies promoting adoption of electric buses also support market expansion.

Although high manufacturing costs and expenses may pressure margins, increased fiscal 2024 forecasts indicate optimism for Blue Bird’s upcoming results. Revenue forecast has been raised to $1.27-$1.32 billion from $1.15-$1.25 billion, with adjusted EBITDA between $145 million and $165 million. Shares of Blue Bird have surged 73% year-to-date, outpacing industry benchmarks.

Investors should keep an eye on Blue Bird Corporation’s innovative ventures in alternative fuels and electric vehicles, which have led to improved financial performance. While reliance on subsidies could pose risk, strategic partnerships and sales diversification initiatives show promise. Shareholders may consider holding onto current positions, while potential investors can monitor for entry opportunities.



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