School bus manufacturer Blue Bird saw fiscal second-quarter earnings come in well above expectations late Wednesday, hitting a record for electric school bus deliveries. Blue Bird has now turned a profit in five consecutive quarters after seeing losses throughout 2022.
The Macon, Ga.-based operation reported Wednesday fiscal second-quarter EPS of 89 cents, up 230% compared to a year ago. The Ford partner's revenue grew 15% to $346 million. Analysts expected earnings of 47 cents per share and sales totaling $298.4 million, according to FactSet.
Blue Bird also announced that it hit a record for quarterly deliveries of its EV school buses. It ended Q2 with around 500 electric school bus orders in its backlog. The company's EV bookings increased 56% compared to last year.
The company added the Environmental Protection Agency's Clean School Bus Program helped generate "strong growth in EV orders." The program was established in 2021 as part of the Bipartisan Infrastructure Law. It provides $5 billion to replace diesel-fueled school buses.
Many auto companies have struggled with electric vehicle segments in 2024. Tesla deliveries came in well below expectations for the latest quarter as demand for EVs appears to be slowing. Tesla stock has dropped 30% this year.
"We've been working aggressively with our dealers and school districts in submitting applications and we are confident that continued, exciting growth is ahead for Blue Bird on the EV front," Chief Executive Phil Horlock said Wednesday.
After its Q2 results, Blue Bird raised its full-year outlook Wednesday. It now expects revenue of $1.275 billion to $1.325 billion, adjusted EBITDA of $145 million to $165 million and adjusted free cash flow between $70 million and $80 million. Blue Bird also raised its long-term profit outlook to margin of more than 14% on around $2 billion in revenue.
In February, Blue Bird expected fiscal 2024 revenue between $1.15 billion and $1.25 billion and adjusted EBITDA of $120 million and $140 million.
Blue Bird stock surged 24.5% to 46.72 during market action on Thursday, hitting record highs. After Wednesday's close, the BLBD shares had gained 39% in 2024 and is up more than 100% since October 2023.
The stock has a perfect 99 Composite Rating out of 99. Additionally, Blue Bird has a 96 Relative Strength Rating and its EPS Rating is 80 out of 99.
Meanwhile, Tesla stock has a 37 Composite Rating, an 18 Relative Strength Rating and a 63 EPS Rating.
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