Camping World Holdings (NYSE:CWH), a Lincolnshire, Illinois-based recreation retailer, saw its shares rise by 10% to $19 in after-hours trading on Wednesday, following a 3.2% rise to close at $17.28. This uptick came as a result of the company's Q3 results surpassing FactSet analysts' predictions.
The company reported a Q3 profit of $16 million or 32 cents per share, which outperformed last year's $41.1 million or 97 cents per share and FactSet's predicted 11 cents per share profit. Despite this success, the company has experienced a yearly share decrease of 23%.
In terms of revenue, Camping World reported a slight dip with Q3 revenue falling by 6.8% to $1.73 billion. However, this figure still exceeded FactSet's forecast of $1.71 billion.
CEO Marcus Lemonis commented on the company's strategy moving forward, emphasizing their focus on improving inventory position ahead of the anticipated up-cycle in 2024.
InvestingPro Insights
As we delve into the InvestingPro data and tips, some noteworthy points emerge about Camping World Holdings. The company has maintained a commendable track record of raising its dividend for three consecutive years and has also sustained dividend payments for eight consecutive years. This reflects a commitment to rewarding its shareholders, even in challenging market conditions.
From a data perspective, the company's Market Cap stands at 1460M USD, with a P/E Ratio of 18.77, indicating a relatively high valuation. The Price / Book ratio as of Q2 2023 is 10.82, suggesting the stock might be overvalued relative to its book value. However, it's crucial to note that the stock is trading near its 52-week low, which could present a potential opportunity for investors looking for an entry point.
InvestingPro Tips also highlight that analysts predict Camping World Holdings will be profitable this year, despite a sales decline anticipated in the current year. This aligns with the company's Q3 results surpassing expectations and shows promise for the future.
For more detailed insights and additional tips, consider exploring the InvestingPro platform. With a wealth of data at your fingertips, you can make informed investment decisions.
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