REV Group shares tumble 12% on top-line miss, weaker-than-expected guidance

EditorRachael Rajan
Published 04/09/2024, 12:18
© Reuters.
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BROOKFIELD, Wis. - REV Group, Inc. (NYSE:REVG) reported third quarter earnings that beat estimates but missed on revenue and provided weaker-than-expected full-year guidance, sending shares tumbling 12% in early trading.

The specialty vehicle manufacturer posted adjusted earnings per share of $0.48, surpassing analyst expectations of $0.42. However, revenue came in at $579.4 million, falling short of the $618.7 million consensus estimate and declining 14.8% YoY.

REV Group lowered its full-year 2024 revenue outlook to $2.35-2.45 billion, below the $2.44 billion analysts were expecting. The company cited continued challenges in its Recreational Vehicles segment as a key factor.

"Market conditions remain challenged" in the RV business, said CEO Mark Skonieczny, though he noted the company is "proactive in managing our cost structure to align with end market demand."

The Specialty Vehicles segment was a bright spot, delivering double-digit adjusted EBITDA margins. Skonieczny highlighted "sequential and YoY improvements within the fire and ambulance businesses."

Third quarter net income rose to $18 million from $14.9 million a year ago. Adjusted EBITDA increased to $45.2 million from $39.4 million, excluding the impact of a divested business.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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