What Happened:

Shares of speciality vehicle provider REV (NYSE:REVG) fell 14% in the pre-market session after the company reported second-quarter earnings results. Its revenue unfortunately missed, and its full-year revenue guidance fell short of Wall Street's estimates. Notably, growth in the specialty vehicle segment was negatively impacted by a decrease in terminal truck shipments. Similarly, sales in the recreational vehicles segment were impacted by reduced unit shipments and increased discounting pressures. The recreational vehicles segment also recorded declining backlogs due to lower order intake and cancellations. On the other hand, REV Group exceeded analysts' EPS expectations this quarter. Its full-year EBITDA guidance exceeded Wall Street's estimates. Overall, this was a weaker quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy REV Group? Access our full analysis report here, it’s free.

What is the market telling us:

REV Group’s shares are not very volatile than the market average and over the last year have had only 18 moves greater than 5%. Moves this big are very rare for REV Group and that is indicating to us that this news had a significant impact on the market’s perception of the business.

REV Group is up 44.6% since the beginning of the year, but at $25.97 per share it is still trading 18.4% below its 52-week high of $31.84 from August 2024. Investors who bought $1,000 worth of REV Group’s shares 5 years ago would now be looking at an investment worth $2,142.

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