As you might know, REV Group, Inc. (NYSE:REVG) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$525m, some 6.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.35, 40% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for REV Group

Taking into account the latest results, the most recent consensus for REV Group from four analysts is for revenues of US$2.38b in 2025. If met, it would imply a reasonable 2.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 22% to US$2.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$2.12 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 17% to US$34.88. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values REV Group at US$39.00 per share, while the most bearish prices it at US$28.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that REV Group's rate of growth is expected to accelerate meaningfully, with the forecast 3.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 3.5% per year. REV Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards REV Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for REV Group going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with REV Group .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.