REVG - REV Group slumps after missing earnings estimates and lowering guidance

REV Group (NYSE:REVG -18.6%) fell to a 52-week low in Tuesday morning trading after missing consensus marks with its Q2 earnings report and issuing light guidance. Sales were down 10% year-over-year during the quarter and adjusted EBITDA fell 48%. The company said the results reflected continuing shortages of key components and lower chassis supply that limited new starts, throughput, and completions. REVG fired off additional pricing actions to align backlog and new orders with its current and future build costs. Looking ahead, REVG expects the current supply chain challenges to continue into 2023 vs. prior expectation for a recovery in the second half of the current fiscal year. The company said shortages of critical parts and chassis have negatively impacted performance, requiring it to lower guidance. "Overcoming supply-chain constraints remains the largest hurdle for this and many other industrial businesses into year-end," warned Jefferies analyst Stephen Volkmann on the REVG

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REV Group slumps after missing earnings estimates and lowering guidance