Rush Enterprises, Inc. Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next

Rush Enterprises, Inc. (NASDAQ:RUSH.A) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Rush Enterprises beat earnings, with revenues hitting US$1.9b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rush Enterprises after the latest results.

View our latest analysis for Rush Enterprises

Following last week's earnings report, Rush Enterprises' twin analysts are forecasting 2025 revenues to be US$7.79b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 4.8% to US$4.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.80b and earnings per share (EPS) of US$4.08 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 6.5% to US$65.50despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Rush Enterprises' earnings by assigning a price premium.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.4% annually for the foreseeable future. It's pretty clear that Rush Enterprises' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rush Enterprises' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Even so, be aware that Rush Enterprises is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.