Shares of Blue Bird have seen a 15% increase to $25 in early trading on Tuesday following the company’s announcement of a profitable fiscal fourth quarter. The school-bus provider, based in Macon, Ga., reported a profit of $18.6 million for the quarter ending on Sept. 30, a significant turnaround from the $23.1 million loss in the same quarter last year.
The adjusted earnings for Blue Bird came in at 66 cents per share, beating analysts’ expectations of 49 cents per share. The company’s revenue also saw a boost, jumping 18% to $303 million, surpassing analyst forecasts of $290.1 million.
D.A. Davidson, an investment firm, has responded to the strong results by raising its price target for Blue Bird shares to $31 from $29 per share. In a note on Tuesday, the firm stated, “We had suspected BLBD was being conservative last quarter, and on our call-back with management we came away thinking there are even a few upside opportunities from here. With the company still in the earlier stages of a multi-year market upturn, we remain comfortable recommending the stock.”
Overall, Blue Bird’s consistent growth and positive financial performance indicate a promising future for the company.