Core Viewpoint - Zacks emphasizes a ranking system focused on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum to find strong companies for investors [1][2]. Group 1: Value Investing - Value investing is a preferred strategy for identifying strong stocks across various market conditions, relying on fundamental analysis and traditional valuation metrics to find undervalued stocks [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3]. Group 2: Blue Bird (BLBD) Stock Analysis - Blue Bird (BLBD) is currently attracting investor attention, holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is a strong value stock [3]. - BLBD's price-to-book (P/B) ratio is 6.79, which is attractive compared to the industry average of 6.84, with a 52-week range of 6.21 to 17.66 and a median of 11.27 [4]. - The price-to-cash flow (P/CF) ratio for BLBD is 10.25, significantly lower than the industry average of 25.58, with a 52-week range of 9.36 to 19.68 and a median of 13.05 [5]. - These valuation metrics suggest that BLBD is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock at present [6].

Core Viewpoint - Blue Bird Corporation (BLBD) reported better-than-expected first-quarter fiscal 2025 earnings and maintained its revenue and adjusted EBITDA guidance for fiscal 2025 [1] Demand and Market Position - Demand for school buses remains strong, prompting Wall Street analysts to increase their earnings estimates for Blue Bird over the past week [2] - Blue Bird has established itself as a leader in alternative fuel and electric-powered buses, with competitors ceasing to offer propane or gasoline-powered models, positioning Blue Bird as the sole OEM for these products [4] Financial Performance - Blue Bird exited the first quarter of fiscal 2025 with a backlog of 4,400 buses, representing approximately six months of production, and reported a backlog of over 4,700 buses valued at $760 million [5] - The company generated a net profit of $28.7 million in the last reported quarter, a significant improvement from an $11 million loss in the same quarter two years ago [7] - Blue Bird expects fiscal 2025 revenues between $1.4 billion and $1.5 billion, an increase from $1.35 billion in 2024, and aims to sell 9,250 buses in fiscal 2025, including around 1,000 electric buses [8] Operational Improvements - Blue Bird has successfully completed an operational turnaround initiated in late 2021, which has led to improved profitability and a strengthened balance sheet, ending the first quarter of fiscal 2025 with $280 million in liquidity [6][7] Government Policy and Risks - The Trump administration's policies pose uncertainties for electric vehicle incentives, with about 25% of Blue Bird's EV backlog linked to delayed EPA rebate approvals [9] - A memo from the EPA indicates that federal funding for the Clean School Bus Program should resume soon, allowing Blue Bird to fulfill pending EV bus orders [10] - Blue Bird secured an $80 million contract from the Department of Energy to fund half of its $160 million plant expansion, which is expected to resume once policy reviews are completed [11] Analyst Sentiment - Wall Street analysts are optimistic about Blue Bird, with five out of seven analysts rating it a "Strong Buy" and an average price target suggesting a 46% upside from current levels [13]

As the American Bus Manufacturing Company Blue Bird Corporation (NASDAQ: BLBD ) entered FY25, it experienced a slight decline in its topline due to lower EV sales. However, the overall demand environment remains strong. I expect the company to continue toAs a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the ...

Core Insights - Blue Bird Corporation (BLBD) reported earnings of 92 cents per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of 83 cents, and slightly up from 91 cents in Q1 fiscal 2024 [1] - Net sales decreased by 1.2% year over year to $313.8 million, falling short of the Zacks Consensus Estimate of $355 million [1] Bus Segment Performance - Net revenues from the Bus segment were $288.1 million, missing the Zacks Consensus Estimate of $328 million, and contracted 1.8% year over year [2] - A total of 2,130 buses were sold, marginally up from 2,129 units in the same period last year [2] - Diesel bus sales increased by 50% year over year to $124.37 million, while alternative power bus sales decreased by 23.7% to $148.9 million [2] - Gross profit from the Bus segment was $47.2 million, down from $51.3 million in the previous year [2] - The order backlog stood at 4,400 units at the end of the quarter [2] Parts Segment Performance - Net revenues from the Parts segment rose by 6.2% year over year to $25.7 million, driven by price increases and improved product mix [3] - The segment's revenue fell short of the consensus estimate of $27.5 million [3] - Gross profit from the Parts segment increased to $13.1 million from $12.2 million in the prior year [3] Operating Expenses and Profitability - Selling, general and administrative (SG&A) expenses were $27.3 million, up from $25.6 million in Q1 fiscal 2024 [4] - Operating profit declined by 12.8% to $33 million [4] Financial Position - As of December 28, 2024, cash and cash equivalents were $136.1 million, an increase from $127.7 million as of September 28, 2024 [5] - Long-term debt decreased to $88 million from $90 million during the same period [5] - The company repurchased 243,245 shares for $10 million during the quarter, with $40 million remaining under its share repurchase authorization [5] Future Outlook - The company expects fiscal 2025 revenues to be in the range of $1.4 billion to $1.5 billion [6] - Adjusted EBITDA is projected between $185 million and $215 million, while free cash flow is anticipated to be between $40 million and $60 million [6] - Blue Bird reaffirmed its long-term revenue target of around $2 billion with an adjusted EBITDA margin of 15% [6]

Financial Data and Key Metrics Changes - The company achieved near record adjusted EBITDA of $46 million, just $2 million below last year's record, with an exceptional adjusted EBITDA margin of 15% [12][39] - Revenue for the first quarter was $314 million, nearly the same as last year, with adjusted free cash flow increasing by $23 million to $22 million [15][39] - The liquidity position at the end of the quarter was a record $280 million, with a significant reduction in debt by over $40 million compared to the previous year [47][39] Business Line Data and Key Metrics Changes - The company sold 2,130 buses in the first quarter, with a revenue breakdown showing bus net revenue at $288 million, down by $5 million due to a lower EV mix [13][40] - Parts sales totaled $26 million, representing a solid 6% growth over last year [17][41] - The EV sales in Q1 were 132 units, which is 36% lower than last year, while alternative powered buses represented a 51% mix of unit sales [41][18] Market Data and Key Metrics Changes - The backlog for Blue Bird school buses was at a healthy 4,400 units at the end of the first quarter, representing almost six months of production [7][16] - The current backlog of electric vehicles represents about $250 million in revenue, which is almost double the value from the same time last year [19] - The average selling price for each ICE bus was about 6% higher than a year ago, reflecting both pricing and richer options [17] Company Strategy and Development Direction - The company is focused on making significant improvements across its entire business, including upgrading facilities and developing new products [10] - The company plans to grow its margin to 15% and beyond over the next few years, with a target of 1,000 EV unit sales for fiscal 2025 [62][70] - The company is also expanding its addressable market by supplying commercial chassis to U.S. last mile delivery businesses and doubling Micro Bird JV bus capacity [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for school buses and the potential for pricing stability and profit margins [7][8] - The company is optimistic about the resumption of the Clean School Bus funding program, which is seen as critical for future EV sales [68][70] - Management acknowledged the challenges posed by executive orders and tariffs but remains confident in the company's ability to navigate these issues [20][33] Other Important Information - The company announced a leadership change, with Phil Horlock stepping down as President and CEO, to be replaced by John Wyskiel [23] - The company has a contractual agreement with the DOE for 50% funding of a new plant expansion, representing $80 million of a total investment of $160 million [21] Q&A Session Summary Question: Scenarios for reaching the high end of EBITDA guidance - Management indicated strong Q1 performance and momentum in non-EV powertrains, suggesting that higher EV sales could help reach the upper end of guidance [74][75] Question: Clarification on unspent funds and EPA program - Management confirmed that 250 buses have firm orders with approved rebates, and there have been no cancellations since the pause [80][81] Question: Pricing strategy in response to tariffs - Management stated that they are prepared to pass through potential tariff costs to customers, similar to a sales tax [84][86] Question: EV mix progression throughout the year - Management forecasted an increase in EV sales throughout the year, with a low mix in Q1 due to timing of EPA funding [90][91] Question: Inventory increase in the last quarter - Management explained that inventory was increased to ensure supply chain stability and to pre-buy components, particularly for EVs [94] Question: Long-term growth without EV funding - Management expressed confidence in multiple growth avenues, including state and local funding for EVs and expansion into new markets [100] Question: Exposure to tariffs on China - Management indicated limited exposure to China, with plans to evaluate and potentially resourcing parts from other countries [103][104] Question: Risks regarding labor availability and components - Management reported a strong labor force and good supply chain conditions, with no current concerns [108][109] Question: Cost structure on EV school buses - Management announced a reduction in EV bus prices by $25,000 and ongoing efforts to drive down costs through alternative suppliers [112][114] Question: Potential for propane as an alternative - Management confirmed that propane is a logical alternative for customers, offering the lowest total cost of ownership without subsidies [120][122]

Core Viewpoint - Blue Bird (BLBD) reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing a slight increase from $0.91 per share a year ago, indicating a positive earnings surprise of 10.84% [1][2] Financial Performance - The company posted revenues of $313.87 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 11.59% and decreased from $317.66 million year-over-year [2] - Over the last four quarters, Blue Bird has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Blue Bird shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] - The current Zacks Rank for Blue Bird is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $390 million, while the estimate for the current fiscal year is $3.88 on revenues of $1.5 billion [7] - The trend of estimate revisions for Blue Bird is mixed, which could change following the recent earnings report [6] Industry Context - The Automotive - Domestic industry, to which Blue Bird belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ................................ to ............................................... Commission File Number 001-36267 BLUE BIRD CORPORATION (Exact name of registrant as ...

BLUE BIRD REPORTS FISCAL 2025 FIRST QUARTER RESULTS; BEATS FIRST QUARTER GUIDANCE; REAFFIRMS 2025 GUIDANCE AND LONG-TERM OUTLOOK Net Sales of $314M and GAAP Net Income of $29M Adj. EBITDA of $46M with 15% Margin and 2,130 Buses Sold FY2025 Adj. EBITDA Reaffirmed at $200M or 14% of Revenue MACON, Ga. (February 5, 2025) – Blue Bird Corporation ("Blue Bird") (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2025 first quarter results. Highlights | (in millions exc ...

Earnings and Financial Performance - Blue Bird Corporation (BLBD) is set to release fiscal Q1 2025 results on Feb 5, with a Zacks Consensus Estimate of 83 cents per share on revenues of $355 million [1] - The Q1 2025 earnings estimate has remained unchanged over the past 60 days, indicating an 8.8% year-over-year contraction, while revenue is expected to grow 11.8% year-over-year [2] - For fiscal 2025, the Zacks Consensus Estimate for revenues is $1.5 billion, implying an 11% year-over-year increase, with earnings projected at $3.88 per share, suggesting a 12% uptick [4] - The company expects net revenues between $1.4 billion and $1.5 billion for fiscal 2025, compared to $1.35 billion in fiscal 2024, with adjusted EBITDA ranging from $190 million to $210 million [7][8] Business and Market Position - Blue Bird's Q1 results are expected to reflect robust demand for school buses, with over 4,800 units in its order backlog at the end of Q4 2024, including around 630 electric school buses [6] - The company is a pioneer in alternative fuel and electric-powered school buses, with over 90% of U S school buses still running on diesel, indicating significant growth potential for cleaner alternatives [14] - Blue Bird has successfully enhanced operations, increased production efficiency, and driven new order growth, solidifying its leadership in alternative-powered buses [14] Stock Performance and Valuation - Over the past six months, Blue Bird's shares have declined 27%, underperforming the industry, sector, S&P 500, and other EV players like Tesla and Rivian [9] - The company is trading at a forward 12-month sales multiple of 0.81, higher than its 5-year median but lower than the industry's 2.44, with a Value Score of A [12] Financial Health and Risk Factors - Blue Bird has a strong balance sheet with $127 million in cash against $90 million in long-term debt, and a disciplined approach to cost management [16] - The company's dependence on subsidies and grants presents a potential risk, as reduced government support could impact growth, particularly given the political uncertainty around EV policies [15]

The most recent trading session ended with Blue Bird (BLBD) standing at $38.07, reflecting a +1.52% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 1.46%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq decreased by 3.07%.Shares of the school bus maker witnessed a loss of 4.92% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 8.85% and underperforming the ...