- REV Group Inc (NASDAQ:REVG) reported a second-quarter FY22 sales decline of 10.5% year-over-year to $576.3 million, missing the consensus of $595.59 million.
- The gross margin declined by 367 bps to 9.9%, and the operating margin fell 525 bps to 0.2%.
- Adjusted EPS of $0.17 missed the consensus of $0.23.
- Adjusted EBITDA declined by 47.7% Y/Y to $23.8 million, and margin contracted by 295 bps to 4.1%.
- The company's backlog increased 54.6% Y/Y to ~$3.62 billion at the end of the quarter.
- The company repurchased ~1.7 million of its common shares for $21.5 million during the quarter.
- REV Group's generated cash from operating activities YTD of $27.4 million, compared to $37.1 million a year ago. It held cash and equivalents of $5.9 million as of April 30, 2022.
- Net debt was $237.1 million, and the company had $293.6 million available under its ABL revolving credit facility as of April 30, 2022.
- Dividend: REV Group declared a quarterly cash dividend of $0.05 per share payable on July 15, 2022, to shareholders of record on June 30, 2022.
- FY22 Outlook: REV Group expects net sales of $2.25 billion - $2.4 billion (prior expectation $2.3 billion - $2.55 billion) versus the consensus of $2.44 billion.
- It expects Adjusted EBITDA of $100 million - $120 million (prior $125 million - $155 million), Adjusted net income of $43 million - $62 million (prior $64 million - $89 million), and Free cash flow of $58 million - $70 million.
- Price Action: REVG shares are trading lower by 14.7% at $10.39 on the last check Tuesday.
Get all your news in one place.
100’s of premium titles.
One app.
Start reading
One app.
Get all your news in one place.
100’s of premium titles. One news app.
Why REV Group Shares Are Sliding Today
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member?
Sign in here
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Our Picks