Key Points
The veteran bus maker delivered a quarter for the ages.
It notched new all-time highs in key fundamentals.
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A beat-and-raise fiscal third quarter was the fuel driving Blue Bird (NASDAQ: BLBD) stock forward this week. Thanks mostly to this the company’s shares motored over 27% higher during the period, according to data compiled by S&P Global Market Intelligence.
Blue’s success with yellow
That three-month period saw Blue Bird, a longtime manufacturer of school buses, hit new highs for both quarterly revenue and profitability. The former line item zoomed 19% higher to $398 million, while non-GAAP (adjusted) net income improved by more than 26% to $38.7 million ($1.19 per share).
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Image source: Getty Images.
Analysts were expecting the quarter to be profitable, but not this profitable. As a group they were modeling only $1 per share for adjusted net income. They also underestimated revenue, as they predicted less than $378 million.
Although it’s identified — if at all — with the traditional gas-guzzling yellow school buses, Blue Bird has been busily upgrading its signature product over the years. It has pushed assertively into the alternative-fuel space, embracing greener solutions such as electric vehicle (EV) technology.
In its earnings release, Blue Bird referred to “expanding its leadership” in such alt-fuel offerings. It also mentioned that it was able to successfully side-step many of the tariffs recently imposed by the Trump administration, among other results-boosting factors.
A lift in guidance
With that solid quarter at its back, Blue Bird felt confident enough to raise its full-year-2025 guidance. The company now expects to earn roughly $1.45 billion in revenue and post an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) figure of $205 million to $215 million. It did not provide a net income estimate.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Blue Bird. The Motley Fool has a disclosure policy.
