REV Group shares added almost 9% on Wednesday after the maker of specialty fire and emergency, commercial, and recreation vehicles reported better-than-expected fourth quarter and full-year fiscal 2023 earnings.
For 4Q, the company posted an 11.2% year-on-year increase in sales to $693.3 million while full-year sales increased 13.1% to $2.64 billion.
Analysts had expected sales of $658.3 million and $2.6 billion respectively.
Diluted adjusted earnings per share for 4Q and the year were $0.53 and $1.36, above expectations of $0.34 and $1.17 and up from $0.28 and $0.81 in the previous comparable periods, respectively.
“We are pleased to deliver strong fourth quarter and full-year results which are a testament to the progress of the operational initiatives we have put in place over the past few quarters, and the hard work of our dedicated employees," REV Group CEO Mark Skonieczny said in a statement.
"We exited our 2023 fiscal year with a strong balance sheet, solid municipal end markets, and a record fire and emergency backlog which we believe positions us for continued growth in fiscal 2024."
For fiscal 2024, REV Group said it was “optimistic,” projecting net sales between $2.6 billion and $2.7 billion and income between $71 million and $90 million.
REV Group shares were up 8.6% at US$18.52 shortly before noon on Wednesday.