Speciality vehicle provider REV (NYSE: REVG) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
REV Group beat analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $629.1 million, up 2% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is REV Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting REV Group’s revenue to grow 6% year on year to $614.4 million, a reversal from the 14.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. REV Group has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.
Looking at REV Group’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cummins’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.4%, and Oshkosh reported a revenue decline of 4%, topping estimates by 0.7%. Cummins traded up 5.6% following the results while Oshkosh was also up 8.2%.
Read our full analysis of Cummins’s results here and Oshkosh’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 5.8% on average over the last month. REV Group is up 7.4% during the same time and is heading into earnings with an average analyst price target of $50.33 (compared to the current share price of $53.21).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
