Why Rev Group Stock Is Down Today
Rev Group (NYSE: REVG) topped Wall Street earnings expectations for the most recent quarter but lowered its outlook for the full year. Investors are focused on the bad news to come, sending shares of Rev down 14% as of 10 a.m. ET.
Rev is a maker of recreational vehicles (RVs) and specialty trucks including ambulances and other public-service vehicles. The company earned $0.48 per share in its fiscal third quarter ending July 31, beating Wall Street's $0.42 per-share estimate. However, revenue of $579.4 million was about $40 million shy of consensus.
The specialty-vehicle segment posted a double-digit earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, thanks to strong demand for fire and ambulance equipment. CEO Mark Skonieczny said that "market conditions [in RVs] remain challenged, however, we continue to be proactive in managing our cost structure to align with end market demand and deliver operating margins in line with our expectations."
Source Fool.com
