Speciality vehicle provider REV (NYSE: REVG) will be reporting results tomorrow before market hours. Here’s what to expect.
REV Group beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $525.1 million, down 10.4% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is REV Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting REV Group’s revenue to decline 3.3% year on year to $596.7 million, improving from the 9.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. REV Group has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.3% on average.
Looking at REV Group’s peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Douglas Dynamics delivered year-on-year revenue growth of 20.3%, beating analysts’ expectations by 6.7%, and Shyft reported revenues up 3.4%, topping estimates by 2.8%. Douglas Dynamics traded up 4.4% following the results while Shyft was also up 18.1%.
Read our full analysis of Douglas Dynamics’s results here and Shyft’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 5.4% on average over the last month. REV Group is up 2.5% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $36.53).
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