Rev Group Inc Down 17.11% To $10.08 After Earnings Miss

Rev Group Inc (REVG) missed earnings estimates for Q2 2022 this morning.

Wall Street earnings per share (EPS) projections for Rev Group Inc were at $0.23. The company missed those estimates with an EPS of $0.17. The earnings per share of $0.17 (which represents a -26% EPS surprise) led to the company's profits falling 56% compared to last year when the firm reported an EPS of $0.39. The decline in Rev Group Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus analyst estimates were at $595.6 million. The Industrials company missed on those expectations for its second quarter with revenue of $576.3 million, a negative revenue surprise of $19.3 million (3%). The firm managed negative 10% growth year-over-year due to Rev Group Inc reporting quarterly revenue of $643.6 million in its year-ago quarter. Rev Group Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 17.11% to $10.08 after the report.

Rev Group Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 45. Meanwhile, the average Wall Street analyst rated the stock a Hold.

REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. It provides customized vehicle solutions for applications including essential needs, industrial and commercial, and consumer leisure. The operating segments of the company are Fire & Emergency, Commercial, and Recreation. The products of the company are sold to municipalities, government agencies, private contractors, consumers, and industrial and commercial end-users. It derives a majority of the revenue from the Fire and Emergency segment which includes manufacturing of fire apparatus and ambulance products. The company operates in the US & Canada, Europe/Africa, and the rest of the world.