Rev Group (NYSE:REVG) shares surged as much as 18% in pre-open Thursday after the manufacturer of specialty vehicles reported stronger-than-expected FQ2 results.
The company posted an FQ2 EPS of $0.35, $0.15 better than the analyst estimate of $0.20. Revenue for the quarter came in at $681.2 million versus the consensus estimate of $580.47M and up 18% year-over-year.
“Consolidated results reflect continued momentum that was demonstrated exiting the first quarter,” REV Group's president and CEO Mark Skonieczny said.
“Within the quarter, several businesses in the F&E and Commercial segments improved their operational consistency with increased starts and completions resulting in improved net sales. Despite a challenged industry environment, the Recreation segment delivered revenue and earnings growth sequentially and year-over-year. As a result, we have raised the full-year outlook for consolidated revenue and EBITDA. I am pleased with the progress we are making and appreciate the efforts of the local teams to deliver these results.”
The company’s full-year outlook sees sales of $2.5 billion, ahead of the consensus at $2.41B. REV Group previously expected FY sales of $2.4B. The adjusted EBITDA is seen in the range of $120M-$135M, above the prior forecast of $120M and the consensus of $121M.
REV also said its board approved a new buyback program of up to $175M.