REV Group Earnings: What To Look For From REVG

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REV Group Earnings: What To Look For From REVG

Speciality vehicle provider REV (NYSE:REVG) will be reporting earnings tomorrow before market open. Here’s what investors should know.

REV Group beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $616.9 million, down 9.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings 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 decline 9% year on year to $618.7 million, a reversal from the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.

REV Group Total Revenue
REV Group Total Revenue

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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.9% 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. Douglas Dynamics’s revenues decreased 3.6% year on year, beating analysts’ expectations by 9.4%, and Oshkosh reported revenues up 18%, topping estimates by 2.5%. Douglas Dynamics traded up 16.2% following the results while Oshkosh was down 7.9%.

Read our full analysis of Douglas Dynamics’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 6.6% on average over the last month. REV Group is up 20.1% during the same time and is heading into earnings with an average analyst price target of $29.1 (compared to the current share price of $31.89).

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