REVG Returns To Profit In Q2 Beating Street; Ups Guidance; Sets Share Buyback; Stock Jumps

Specialty vehicles manufacturer REV Group, Inc (REVG), Thursday reported earnings for the second quarter compared to a loss for the same period last year, on higher revenues including price realization across all divisions. Earnings also surpassed the Street view. The company also raised its earnings and revenue outlook for the full year.

The company also said it has been authorized to buy back up to $175 million of shares, replacing the earlier authorization of $150 million.

Quarterly earnings were $14.2 million or $0.24 per share compared with a loss of $2.3 million or $0.04 per share last year.

Adjusted earnings were $20.8 million or $0.35 per share compared to $10.6 million or $0.17 per share of last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.18 for the quarter. Analysts’ estimates typically exclude special items.

Adjusted EBITDA was $41.9 million compared to $23.8 million for the same period last year. The increase in adjusted EBITDA was due to higher contributions from the F&E and Commercial segments.

Revenue increased 18.2 percent to $681.2 million from $576.3 million of last year.

The company declared a quarterly cash dividend of $0.05 per share, payable on July 14 to shareholders of record on June 30.

Looking ahead for the full year, the company raised its guidance. It now expects the earnings to range from $15 million-$30 million compared to $13 million-$32 million as previously provided

Adjusted earnings are now expected in the range of $48 million-$62 million. Previously, the guidance was for $42 million-$62 million.

Adjusted EBITDA is expected between $120 million and $135 million. The company expected between $110 million and $130 million previously.

Revenue is now estimated to be in the range of $2.45 billion and $2.55 billion compared with $2.3 billion and $2.5 billion guided earlier. The Street estimate for revenue is $2.41 billion.

In premarket activity, shares of REV Group are trading at $13.49, up 14.71% or $1.73 on the New York Stock Exchange.

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