Blue Bird's (BLBD) Q4 Sales Beat Estimates

Revenue:

* $313.9 million vs. analyst estimates of $309.8 million
* 1.3% beat, 1.2% YoY decline

Adjusted EPS:

* $0.92 vs. analyst estimates of $0.81
* 13.5% beat

Adjusted EBITDA:

* $45.75 million vs. analyst estimates of $41.63 million
* 9.9% beat, 14.6% margin

Key Financial Highlights:

* Reaffirmed full-year revenue guidance of $1.45 billion at midpoint
* EBITDA guidance for full year is $200 million at midpoint, above analyst estimates
* Operating margin: 10.5%, down from 11.9% in Q4 2023
* Free cash flow: $21.82 million, up from -$2.69 million in Q4 2023
* Sales volumes: Flat YoY (8.8% growth in Q4 2023)
* Market capitalization: $1.16 billion

Company Overview:

* School bus manufacturer with a century of experience
* Focus on providing complementary parts and services

Industry Trends:

* Investment in automated and connected heavy transportation equipment
* Development of electric vehicles and mobility solutions to address environmental concerns

Sales Growth:

* 5.7% compounded annual growth rate over the last five years
* 21.7% annualized revenue growth over the last two years

Operating Margin:

* Average of 4.2% over the last five years
* 7.6 percentage point increase over the last five years
* 10.5% operating profit margin in Q4, down 1.4 percentage points YoY

Earnings Per Share (EPS):

* 16.1% compounded annual growth rate over the last five years
* 113% annual EPS growth over the last two years

Key Takeaways:

* Beat analyst expectations for sales volume, revenue, and EBITDA
* Slight miss on full-year revenue guidance
* Solid quarter with potential for upside
* Market reaction: 2.1% decline in stock price

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