Blue Bird Corp EPS Beats Estimates, Sales Miss in Q1 2025

Blue Bird Corporation reports a strong EPS of 92 cents, exceeding expectations. However, net sales lagged at $313.8 million, down 1.2% from last year, which may impact stock prices.

Date: 08-02-2025

AI Rating: 5

Financial Performance Overview
Blue Bird Corporation has reported its first-quarter earnings indicating a positive trend in Earnings Per Share (EPS) while struggling with overall revenue growth. The EPS of 92 cents surpassed the Zacks Consensus Estimate of 83 cents and is slightly up from 91 cents in the same quarter last year.

Revenue Growth and Sales Challenges
Despite the positive EPS, Blue Bird's net sales decreased by 1.2% year over year to $313.8 million, falling short of the Zacks Consensus Estimate of $355 million. The Bus segment's revenue, which amounted to $288.1 million, also did not meet expectations, missing the consensus mark of $328 million.

Net Income and Profit Margins
With sales falling below expectations, this could place pressure on Blue Bird's net income. Additionally, gross profit in the Bus segment decreased from $51.3 million to $47.2 million year-over-year, suggesting erosion in profit margins.

Free Cash Flow and Future Projections
Blue Bird has projected its Free Cash Flow (FCF) for fiscal 2025 to be in the range of $40-$60 million. This outlook, while providing some reassurance, indicates potential constraints given the current sales trajectory.

Overall Assessment
With solid EPS performance overshadowed by disappointing revenue figures, investors may show cautious sentiment towards Blue Bird's stock, particularly with existing challenges in the market. The company's acknowledgment of long-term targets around $2 billion in revenue with a consistent adjusted EBITDA margin of 15% could provide some level of confidence for potential investors.

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