Camping World's Shares Surge on Its New Outlook and Goals
Camping World Holdings, Inc. (NYSE: CWH) ended the day's trading with its shares up nearly 5% after a press release described its new 2021 outlook and goals. Two highlights of the recreational vehicle (RV) and camping supply company's projections include plans to boost revenue per member by 10% over the next 36 months, and the expectation that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will rise from $460 million to $490 million during 2020 to $500 million in 2021.
The company says it is working on business improvements on multiple fronts, including R&D investment in efforts to "create more efficient, more responsible, light weight, innovative and tech-savvy" recreational vehicles and accessories. The eco-friendly RVing trend has continued to gather strength for at least a decade, while according to MarketWatch, COVID-19 could help drive RV sales to an 8.6% compound annual growth rate (CAGR) through 2025. Camping World's push to develop new, "greener" RVs could potentially mesh profitably with both these trends.
Image source: Getty Images.
Source Fool.com
