BROOKFIELD, Wis. - REV Group, Inc. (NYSE:REVG), a leading manufacturer of specialty vehicles, has reported a solid earnings and revenue beat for the first quarter of 2024.
The company announced a first-quarter adjusted EPS of $0.25, surpassing the analyst consensus estimate of $0.15. Revenue also exceeded expectations, coming in at $586 million compared to the predicted $579.42 million.
The company's robust performance, which saw a modest year-over-year (YoY) revenue increase of 0.4% from $583.5 million in the first quarter of the previous year, sent shares climbing by 3.56% initially, though they are down 0.29% as of this writing.
REV Group's net income for the quarter was a striking $182.7 million, a significant turnaround from a net loss of $13.5 million in the same quarter last year. Adjusted Net Income also saw a notable increase to $14.7 million from $6.9 million YoY. The company attributed the improved earnings to successful pricing actions and operational enhancements within the Specialty Vehicles segment.
President and CEO Mark Skonieczny expressed satisfaction with the first-quarter outcomes, stating, "We are pleased that first quarter results demonstrate continued momentum of previously announced pricing actions and operational improvements, resulting in solid year-over-year margin improvements and throughput increases within the Specialty Vehicles segment, which contributed to our strong first quarter earnings."
Looking ahead, REV Group has adjusted its full-year fiscal 2024 outlook, forecasting net sales between $2.45 to $2.55 billion, which falls below the analyst consensus of $2.606 billion. The company anticipates adjusted EBITDA to range from $145.0 to $165.0 million, and adjusted Net Income between $72.0 to $90.0 million. The midpoint of this guidance is below the consensus estimates. Additionally, REV Group expects net cash from operating activities to be between $16.0 to $36.0 million, including around $71.0 million related to divestiture activities, and adjusted Free Cash Flow is projected to be between $57.0 to $72.0 million.
The company's strategic initiatives, including the sale of its Collins Bus business and the discontinuation of manufacturing operations at its ENC facility, are part of its efforts to optimize its product portfolio and enhance shareholder value.
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