2023-05-09 10:40:44 ET
LCI Industries ( NYSE: LCII ) notched a beat on top and bottom lines for the first quarter on Monday.
Shares of the Elkhart, Indiana manufacturer moved modestly higher as Q1 GAAP EPS of $0.29 doubled the consensus expectation. Meanwhile, a 40.7% drop in revenue was $106.69M above the Street’s more pessimistic expectation.
“Despite challenging wholesale and OEM environments, we delivered solid results in the first quarter of 2023, underscored by robust content growth and strong sequential margin expansion given current market conditions. Steadfast focus on our diversification strategy and continued operational improvements have positioned us to deliver sustained profitability, with performance in our adjacent industries and aftermarket businesses helping to partially offset the impact of lower RV OEM shipments,” CEO Jason Lipper said. “As we navigate through this down cycle, largely driven by recent overproduction within the industry, we remain confident in the underlying strength of the outdoor lifestyle and are seeing continued retail demand coming out of spring shows.”
Lipper indicated that the company “made significant progress” towards reducing inventories, reducing overall inventories by $300M. He added that he expects “substantial margin growth” as OEM production recovers.
Into April 2023, the company said that consolidated net sales were approximately $338M, down 37% year over year. Inventories have been slimmed by $120M since the start of 2023 to just over $900M.
Shares of LCI Industries ( LCII ) edged 0.7% higher during Tuesday’s trading after the earnings result .
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LCI Industries posts better-than-feared Q1 update