Shares in REV Group, the specialty vehicle manufacturer, received a jolt after the company reported an earnings and revenue beat in fiscal 3Q.
The company said that strong demand for fire trucks, ambulances and school buses drove revenue higher for the quarter ended July 31, 2023.
Net income for the quarter was $14.9 million or $0.25 per share, up from $9.5 million or $0.16 per share in the same period last year. Adjusted net income, excluding items, was $0.35 per share, compared to $0.24 per share a year ago, exceeding analysts' expectations.
Total revenue in the quarter increased to $680 million, surpassing analysts' estimates of $627.16 million.
Brookfield, Wisconsin-based REV saw improved performance in the Fire & Emergency and Commercial segments but faced challenges in the Recreation segment, leading to variations in net sales, backlog, and adjusted EBITDA across these segments.
Looking ahead to fiscal 2023, the company raised its outlook, projecting net income in the range of $27 million to $37 million and adjusted net income between $63 million to $73 million on net sales of $2.55 billion to $2.60 billion. The revised guidance is higher than their previous expectations.
“We remain focused on execution and advancement of REV Drive lean initiatives designed to reduce manufacturing complexity, improve efficiency, and increase throughput,” CEO Mark Skonieczny said in a statement accompanying the results.
“The progress we have made in these operating programs provides us confidence of continued momentum which is reflected in today’s update to our full year fiscal guidance.”
Shares of REV rose as much as 11% in early trading before settling at around $14.12 in New York, up around 9.2%.