Blue Bird (BLBD) News & Sentiment

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Blue Bird Corporation is a compelling investment due to its focus on electric school buses and attractive stock valuation despite recent performance setbacks. Short-term revenue decline is attributed to supply chain issues, but profitability improved due to lower interest expenses and state emissions credit sales. Management forecasts significant growth in electric bus deliveries and overall revenue, projecting strong future financial performance and valuation upside.

Blue Bird is likely to remain volatile in the near term, despite the double beat FQ1'25 earnings call and the management's reiterated FY2025 guidance. This is attributed to the lack of clarity surrounding the disbursement of federal funding for the Clean School Bus Program, despite a Federal Judge's issuance of a temporary restraining order. This development may also be why BLBD has lowered its FY2025 EV sales guidance, with it underscoring why the stock has been sold off as it has.

Blue Bird Corporation remains a “Strong Buy” due to its solid backlog, strong funding, and undervaluation, despite recent stock price underperformance. The company reported strong Q1 FY2025 results, with $313.9 million in sales and $45.6 million in adjusted EBITDA, beating internal and consensus estimates. Management's guidance suggests continued growth, targeting 14.5-15% adjusted EBITDA margin by 2028, supported by increasing EV orders and strategic price adjustments.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Blue Bird tops Q1 earnings estimates on strong demand and a robust backlog. But will policy risks derail its momentum?

Blue Bird experienced a slight topline contraction due to a decrease in EV share in total volumes during the first quarter. Expected growth in EV sales with resumed funding and related grants and a robust overall demand environment should drive topline growth in FY25. Benefit from the recent price increase and a favorable mix is expected to support margin in the quarters ahead.

BLBD expects fiscal 2025 adjusted EBITDA and FCF in the band of $185-$215 million and $40-$60 million, respectively.

Blue Bird Corporation (NASDAQ:BLBD ) Q1 2025 Results Conference Call February 5, 2025 4:30 PM ET Company Participants Mark Benfield - Head of Invest Relations Phil Horlock - Chief Executive Officer Razvan Radulescu - Chief Financial Officer Conference Call Participants Eric Stine - Craig-Hallum Greg Lewis - BTIG Craig Irwin - ROTH Capital Partners Chris Pierce - Needham Operator Hello, everyone. Thank you for attending today's Blue Bird Fiscal 2025 First Quarter Earnings Conference Call.