Latest news with #REVG
Yahoo
2 days ago
- Business
- Yahoo
REV Group (NYSE:REVG) Beats Expectations in Strong Q1, Full-Year Outlook Slightly Exceeds Expectations
Speciality vehicle provider REV (NYSE:REVG) announced better-than-expected revenue in Q1 CY2025, with sales up 2% year on year to $629.1 million. The company's full-year revenue guidance of $2.4 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP profit of $0.70 per share was 22.8% above analysts' consensus estimates. Is now the time to buy REV Group? Find out in our full research report. Revenue: $629.1 million vs analyst estimates of $596.7 million (2% year-on-year growth, 5.4% beat) Adjusted EPS: $0.70 vs analyst estimates of $0.57 (22.8% beat) Adjusted EBITDA: $58.9 million vs analyst estimates of $52.2 million (9.4% margin, 12.8% beat) EBITDA guidance for the full year is $210 million at the midpoint, above analyst estimates of $203.4 million Operating Margin: 7.9%, up from 3.7% in the same quarter last year Free Cash Flow Margin: 13.9%, up from 5.5% in the same quarter last year Backlog: $4.55 billion at quarter end Market Capitalization: $1.92 billion Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, REV Group struggled to consistently increase demand as its $2.33 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. REV Group's recent performance shows its demand remained suppressed as its revenue has declined by 3.1% annually over the last two years. This quarter, REV Group reported modest year-on-year revenue growth of 2% but beat Wall Street's estimates by 5.4%. Looking ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. REV Group was profitable over the last five years but held back by its large cost base. Its average operating margin of 3% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, REV Group's operating margin rose by 4.2 percentage points over the last five years. In Q1, REV Group generated an operating margin profit margin of 7.9%, up 4.2 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. REV Group's EPS grew at an astounding 74.3% compounded annual growth rate over the last five years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure. We can take a deeper look into REV Group's earnings quality to better understand the drivers of its performance. As we mentioned earlier, REV Group's operating margin expanded by 4.2 percentage points over the last five years. On top of that, its share count shrank by 19.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For REV Group, its two-year annual EPS growth of 45.3% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, REV Group reported EPS at $0.70, up from $0.39 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects REV Group's full-year EPS of $2.09 to grow 33.7%. We were impressed by how significantly REV Group blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also excited its full-year EBITDA guidance outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3.4% to $38.50 immediately after reporting. REV Group had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
REV Group (REVG) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
REV Group (REVG) reported $629.1 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 2%. EPS of $0.70 for the same period compares to $0.39 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $596.64 million, representing a surprise of +5.44%. The company delivered an EPS surprise of +18.64%, with the consensus EPS estimate being $0.59. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how REV Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Recreation Vehicles: $175.30 million versus $164.12 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.5% change. Net Sales- Specialty Vehicles: $453.90 million versus $432.66 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change. Net Sales- Corporate & Other: -$0.10 million compared to the -$0.17 million average estimate based on three analysts. The reported number represents a change of -50% year over year. Adjusted EBITDA- Recreation Vehicles: $10.90 million compared to the $10.15 million average estimate based on three analysts. Adjusted EBITDA- Specialty Vehicles: $56.30 million compared to the $49.31 million average estimate based on three analysts. Adjusted EBITDA- Corporate & Other: -$8.30 million versus -$8.71 million estimated by three analysts on average. View all Key Company Metrics for REV Group here>>>Shares of REV Group have returned +4.6% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report REV Group, Inc. (REVG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
REV Group (REVG) Beats Q2 Earnings and Revenue Estimates
REV Group (REVG) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 18.64%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.40, delivering a surprise of 37.93%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. REV Group , which belongs to the Zacks Transportation - Services industry, posted revenues of $629.1 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 5.44%. This compares to year-ago revenues of $616.9 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. REV Group shares have added about 16.8% since the beginning of the year versus the S&P 500's gain of 1.5%. While REV Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for REV Group: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $599.64 million in revenues for the coming quarter and $2.37 on $2.36 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Transportation sector, Euroseas Ltd. (ESEA), has yet to report results for the quarter ended March 2025. This company is expected to post quarterly earnings of $3.41 per share in its upcoming report, which represents a year-over-year change of +28.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Euroseas Ltd.'s revenues are expected to be $56.38 million, up 16.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report REV Group, Inc. (REVG) : Free Stock Analysis Report Euroseas Ltd. (ESEA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
2 days ago
- Business
- Washington Post
REV Group: Fiscal Q2 Earnings Snapshot
BROOKFIELD, Wis. — BROOKFIELD, Wis. — REV Group, Inc. (REVG) on Wednesday reported fiscal second-quarter net income of $19 million. The Brookfield, Wisconsin-based company said it had profit of 38 cents per share. Earnings, adjusted for one-time gains and costs, came to 70 cents per share. The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 59 cents per share. The company posted revenue of $629.1 million in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $596.6 million. REV Group expects full-year revenue in the range of $2.35 billion to $2.45 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on REVG at
Yahoo
2 days ago
- Business
- Yahoo
REV Group: Fiscal Q2 Earnings Snapshot
BROOKFIELD, Wis. (AP) — BROOKFIELD, Wis. (AP) — REV Group, Inc. (REVG) on Wednesday reported fiscal second-quarter net income of $19 million. The Brookfield, Wisconsin-based company said it had profit of 38 cents per share. Earnings, adjusted for one-time gains and costs, came to 70 cents per share. The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 59 cents per share. The company posted revenue of $629.1 million in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $596.6 million. REV Group expects full-year revenue in the range of $2.35 billion to $2.45 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on REVG at
