PATK - Camping World cuts dividend misses estimates; shares tumble

2023-08-02 11:16:28 ET

Camping World Holdings, Inc. ( NYSE: CWH ) dropped 13% on Wednesday after slashing its dividend and missing estimates.

Camping World ( CWH ) cut its dividend by 80% to $0.125 after concluding its review of the company’s capital allocation strategy. CWH will prioritize RV dealership acquisitions.

Since January 1, the camping company has opened, acquired, or signed letters of intent with over 30 RV dealership locations.

For the second quarter, the Lincolnshire, Ill., group reported non-GAAP EPS of $0.73 that missed the average analyst estimate by $0.03, and revenue of $1.9B that missed by $70M.

Same-store used vehicle unit sales increased 8.8% for the second quarter, and same-store new vehicle unit sales decreased 23.7%.

“We sold the most used units in our company’s history, with record setting used vehicle gross profit,” Chief Executive Officer Marcus Lemonis said in a statement. “The unprecedented influx of acquisition opportunities has continued and the pipeline is robust. We plan to capitalize on it as we invest ahead of anticipated revenue growth in 2024 and beyond.”

Short interest on CWH is relatively high at 18% compared to rival Patrick Industries ( PATK ) at 5.3% and LCI Industries (LCI) at 9%.

Peers THOR Industries, Inc. ( THO ), Winnebago Industries, Inc. ( WGO ) and Patrick Industries, Inc. ( PATK ) traded lower.

Camping World ( CWH ) is down 2.4% in the past 12 months and up 22% this year so far.

More on CWH:

• Camping World: Outlook Positive, Shares Fairly Priced
• Camping World slashes dividend by 80% to $0.125
• Camping World Non-GAAP EPS of $0.73 misses by $0.03, revenue of $1.9B misses by $70M

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