Stock Alert: Rush Enterprises Down 10% On Q4 Results, Outlook

(RTTNews) - Shares of commercial vehicles dealer Rush Enterprises, Inc. (RUSHA) are falling more than 10% on Thursday morning on weak fourth-quarter earnings and grim outlook.

Net income for the fourth quarter was down to $23.8 million, or $0.64 per share, from $47.0 million, or $1.20 per share, in the comparable quarter last year. Analysts on average polled by Thomson Reuters were expecting $0.97.

Revenue in the fourth quarter decreased to $1.3 billion from $1.5 billion in the same quarter a year ago on declines in new Class 8 truck sales and aftermarket products and services sales. The Sreet expected revenue of $1.32 billion.

"Looking forward, we expect that parts and service activity throughout the industry will be relatively flat in 2020 compared to 2019. We believe aftermarket demand from our energy sector customers has bottomed, which will limit our year over year aftermarket growth in the first half of 2020 because stronger energy sector demand existed in the first half of 2019," said W.M. "Rusty" Rush, chief executive.

RUSHA is currently trading at $40.50 and has been in a range of $33.73- $49.27 in the past one year.