Speciality vehicle provider REV (NYSE:REVG) will be reporting results tomorrow before market open. Here’s what investors should know.
REV Group missed analysts’ revenue expectations by 6.4% last quarter, reporting revenues of $579.4 million, down 14.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations.
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 13% year on year to $603.3 million, a reversal from the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 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 6% on average.
Looking at REV Group’s peers in the heavy transportation equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cummins posted flat year-on-year revenue, beating analysts’ expectations by 1.8%, and Allison Transmission reported revenues up 12%, topping estimates by 4.3%. Cummins traded up 9.3% following the results while Allison Transmission was also up 8%.
Read our full analysis of Cummins’s results here and Allison Transmission’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. REV Group is down 3.1% during the same time and is heading into earnings with an average analyst price target of $29.88 (compared to the current share price of $29.86).
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