Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Rush Enterprises (NASDAQ:RUSHA) and the best and worst performers in the vehicle parts distributors industry.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Transportation parts distributors that boast reliable selection in sometimes specialized areas combined and quickly deliver products to customers can benefit from this theme. Additionally, distributors who earn meaningful revenue streams from aftermarket products can enjoy more steady top-line trends and higher margins. But like the broader industrials sector, transportation parts distributors are also at the whim of economic cycles that impact capital spending, transportation volumes, and demand for discretionary parts and components.

The 4 vehicle parts distributors stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 7.1%.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

Vehicle Parts Distributors stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

Best Q2: Rush Enterprises (NASDAQ:RUSHA)

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Rush Enterprises reported revenues of $2.03 billion, up 1.2% year on year. This print exceeded analysts’ expectations by 8.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.

Unsurprisingly, the stock is down 2.9% since reporting and currently trades at $49.51.

Is now the time to buy Rush Enterprises? Access our full analysis of the earnings results here, it’s free.

GATX (NYSE:GATX)

Originally founded to ship beer, GATX (NYSE:GATX) provides leasing and management services for railcars and other transportation assets globally.

GATX reported revenues of $386.7 million, up 12.7% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a slower quarter with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $129.80.

Is now the time to buy GATX? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Air Lease (NYSE:AL)

Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.

Air Lease reported revenues of $667.3 million, flat year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.

Air Lease delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 8.2% since the results and currently trades at $43.83.

Read our full analysis of Air Lease’s results here.

FTAI Aviation (NASDAQ:FTAI)

With a focus on the CFM56 engine that powers Boeing and Airbus’s aircrafts, FTAI Aviation (NASDAQ:FTAI) provides aircraft and engine leasing as well as the maintenance and repair of these products.

FTAI Aviation reported revenues of $443.6 million, up 61.7% year on year. This result topped analysts’ expectations by 22%. Aside from that, it was a slower quarter as it produced a miss of analysts’ earnings estimates.

FTAI Aviation scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 25.1% since reporting and currently trades at $135.

Read our full, actionable report on FTAI Aviation here, it’s free.

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