What Happened?

Shares of speciality vehicle provider REV (NYSE:REVG) jumped 16.8% in the morning session after the company reported third-quarter results, which blew past analysts' EBITDA and EPS estimates. On the other hand, its revenue in the quarter and full-year revenue guidance both missed. Overall, this quarter was mixed. The market seems to be more focused on the positives.

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What The Market Is Telling Us

REV Group’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for REV Group and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 14% on the news that the company reported weak second-quarter earnings results. Its revenue unfortunately missed, and its full-year revenue guidance fell short of Wall Street's estimates. Notably, growth in the specialty vehicle segment was negatively impacted by a decrease in terminal truck shipments. Similarly, sales in the recreational vehicles segment were impacted by reduced unit shipments and increased discounting pressures. The recreational vehicles segment also recorded declining backlogs due to lower order intake and cancellations. 

On the other hand, REV Group exceeded analysts' EPS expectations this quarter. Its full-year EBITDA guidance exceeded Wall Street's estimates. Overall, this was a weaker quarter.

REV Group is up 84.3% since the beginning of the year, and at $33.11 per share, has set a new 52-week high. Investors who bought $1,000 worth of REV Group’s shares 5 years ago would now be looking at an investment worth $2,545.

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