REVG - REV Group rallies after earnings topper solid guidance

REV Group ( NYSE: REVG ) reported sales rose 5.7% in FQ4 to $623.6M. The increase in sales during the quarter was primarily due to higher net sales in the Commercial and Recreation segments, partially offset by a decrease in net sales in the Fire and Emergency segment.

Adjusted EBITDA in the quarter was $33.5M vs. $31.3M a year ago. The increase in adjusted EBITDA was driven by increased contribution from the Recreation segment, partially offset by a decrease in the F&E and Commercial segments.

REV Group ( REVG ) CEO Rod Rushing said the company managed macro headwinds that impacted its ability to achieve consistent production flow and staffing levels within its manufacturing facilities through the fiscal year.

"In the face of these challenges, we continued to deploy operational initiatives that we believe will deliver improved operational performance and shareholder value," he noted. REVG is said to have made progress against supply chain headwinds with an expectation to benefit from multi-sourcing initiatives within the first half of fiscal 2023.

Guidance update: FY23 sales of $2.30B to $2.50B vs. consensus of $2.35B, net income of $28M to $47M, adjusted Net Income of $42M to $60M, adjusted EBITDA of $110M to $130M.

Shares of REVG rose 4.97% following the earnings topper.

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