Blue Bird Corporation (NASDAQ:BLBD)

WEB NEWS

Friday, May 12, 2017

Research

BLBD ($19.35) announced Q2 2017 results:

  • Sales of $208.7 million vs $191.2 million in the prior year; ahead of analyst estimates of $195.9

  • EPS of $0.07 vs $0.02 in the prior year; below analyst estimates of $0.15

  • Reaffirmed full year 2017 guidance (see in management quotes)

Quotes from management:

“Our second quarter sales were strong with double-digit growth in unit volume and we secured a number of first-time accounts,” said Phil Horlock, President and Chief Executive Officer of Blue Bird Corporation. “We maintained our strong leadership position in alternative-fuel-powered buses, with year-to-date orders 43% higher than at the same time last year. With a strong backlog of new bus orders that take us into the fourth quarter, we are pleased to reaffirm our full-year fiscal 2017 net revenue guidance of $980 million - 1,010 million, Adjusted EBITDA guidance of $72 - 76 million and Adjusted Free Cash Flow guidance of $38 - 42 million.”

While we closed out our long position in BLBD common stock on April 11, 2017 as shares were hitting new highs of $18.35, we remain long via BLBD warrants, trading as BLBDW. We bought the BLBD warrants (BLBDW) at $1.20 and they have since increased in price to $3.95.  We initiated our position in July 2016 as a special situation play when the stock was trading ~$14.00, based on what we perceived as a potential shareholder abuse case, but with substantial upside.


Wednesday, January 4, 2017

Research

BLBD ($15.50) - Tappan Street Partners files a 13G showing a 5.8% stake.