REVG - 3 Reasons Bus Maker REV Group Is Down Despite an Earnings Beat
REV Group (NYSE: REVG) , a manufacturer of buses, fire trucks, and high-end recreational vehicles (RVs), saw its stock price drive off a cliff after it announced its third quarter (Q3) 2021 earnings results on Wednesday, Sept. 9. Though its stock price recovered a little ground the following day, the approximate 16.3% plunge shows traders and investors weren't pleased despite an earnings per share (EPS) beat. Here are three reasons the market turned negative on the company.
REV Group managed to eke out some revenue gains year over year, with Q3 net sales increasing 1.9% to $593.3 million. This missed the consensus estimate of approximately $663.4 million predicted by Wall Street analysts, however, delivering a 10.6% negative surprise.
The company's biggest segment, fire and emergency vehicles, experienced a 12.1% year over year drop in sales. The RV segment, somewhat smaller than fire and emergency, gained 16.3%, driven by the surge in RV sales benefiting other manufacturers like Thor Industries . REV's smallest segment, commercial (buses and street sweepers), grew 20.5%.
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3 Reasons Bus Maker REV Group Is Down Despite an Earnings Beat