Blue Bird Corp. (NASDAQ:BLBD) gained in pre-market trading after reporting better-than-expected first-quarter results. The manufacturer of school buses reported adjusted earnings of $0.91 per share, exceeding consensus estimates of $0.33 per share.
The company posted revenues of $317.7 million, an increase of 34.8% year-over-year, beating Street estimates of $275.1 million. Market demand for Blue Bird’s school buses remains strong, and the company had more than 400 electric school bus orders in its backlog at the end of the first quarter.
Blue Bird raised its FY24 guidance and now expects net revenues in the range of $1.15 billion to $1.25 billion, with adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) likely to be between $120 million and $140 million. Over the long term, the company has projected around $2 billion in revenues with an adjusted EBITDA margin expected to be more than 12%.
Is BLBD a Good Stock to Buy?
Analysts remain bullish about BLBD will a Strong Buy consensus rating based on a unanimous three Buys. Over the past year, BLBD stock has surged by more than 100%, and the average BLBD price target of $30.75 implies a downside potential of 1.6% at current levels.
