Despite challenges in the RV market, REV Group's specialty vehicles segment has driven strong earnings, leading to a 74.27% share price increase in the past year. Management's focus on productivity and cost control has resulted in earnings growth outpacing revenue, with a one-year price target of $48.05, a 41% increase. REV's competitive strengths and market leadership in specialty vehicles, particularly fire and ambulance, support its continued profitability and growth potential.
Here is how REV Group (REVG) and Alaska Air Group (ALK) have performed compared to their sector so far this year.
REV Group (REVG) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
The COVID-19 pandemic helped foster a new generation of recreational vehicle (RV) users to take advantage of the outdoor lifestyle. The good times for RV makers in the auto/tires/trucks sector seemed like they would stick around well after the pandemic re-opening.
REV Group (REVG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
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.
REV Group (REVG) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
REV Group, Inc. (NYSE:REVG ) Q4 2024 Earnings Conference Call December 11, 2024 10:00 AM ET Company Participants Drew Konop - Vice President, Investor Relations Mark Skonieczny - President & CEO Amy Campbell - CFO Conference Call Participants Mig Dobre - Baird Mike Shlisky - D.A. Davidson Angel Castillo - Morgan Stanley Jerry Revich - Goldman Sachs Operator Good day, and welcome to the REV Group Fourth Quarter Earnings Conference Call.
Although the revenue and EPS for REV Group (REVG) give a sense of how its business performed in the quarter ended October 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
REV Group (REVG) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.53 per share a year ago.
REV Group, Inc.'s performance is mixed; the RV segment struggles with declining sales and backlog, while specialty vehicles show robust growth and backlog. Q3 results showed a 14.8% y/y revenue decline, missing estimates; RV sales plunged 31.3%, while specialty vehicles grew 50% in adjusted EBITDA. Concerns over economic conditions, sticky inflation, and potential recession impact RV demand; specialty vehicles may also face headwinds despite a strong backlog.
REV Group's topline contracted by 14.8% in Q3 2024 due to the divestiture of Collin Bus and weak Recreational vehicle segment sales. Despite topline decline, the Specialty vehicle segment's strong price realization and operational improvements drove a 200 bps margin growth, boosting adjusted EPS to $0.48. Topline prospects look weak in the near term due to weak demand in the Recreation segment and certain parts of the Specialty segment.