Blue Bird Sees Surge in Sales and Raises Guidance
Blue Bird reports a rise in sales and raises fiscal year guidance following strong financial performance, driven by demand for their electric buses.
Blue Bird, a leading electric school bus maker based in Macon, Ga., saw a significant rise in its fiscal first-quarter sales, leading to a boost in its fiscal year guidance. This positive news caused the company's stock to rise by 8.8% to $34 during after-hours trading, following a 0.3% increase at Wednesday's close. Since the beginning of the year, Blue Bird's shares have risen by an impressive 16%.
In terms of financial performance, Blue Bird reported a revenue increase of 35% to $317.7 million, surpassing analysts' expectations of $275.1 million. This growth in revenue was primarily driven by a nearly 27% rise in the average selling price for buses and an 8.8% increase in units booked. The company's profitability also experienced a positive turnaround, with a profit of $26.2 million, or 81 cents a share, compared to a loss of $11.3 million, or 35 cents a share, in the same period last year. Analysts had predicted a per-share profit of 30 cents, highlighting Blue Bird's strong performance.
One of the contributing factors to this success is the strong demand for Blue Bird's electric buses, particularly due to their association with an Environmental Protection Agency program. The company's commitment to environmentally friendly transportation solutions has resonated well with customers and further fueled their growth.
As a result of their solid performance, Blue Bird has revised their adjusted Ebitda (earnings before interest, tax, depreciation, and amortization) guidance for fiscal 2024. The company now expects adjusted Ebitda to range between $120 million and $140 million, up from their previous forecast of $105 million to $125 million. This aligns with analysts' expectations of $120 million in adjusted Ebitda.
Blue Bird's impressive sales surge and positive financial results signify their continued success in the electric bus industry. With their commitment to sustainable transportation and a strong demand for their products, the company is well-positioned for future growth.