REV Group Inc. (REVG) updated its fiscal 2022 guidance, while reporting Q2 results.
The company’s second quarter 2022 net loss was $2.3 million or $0.04 per share, which included $7.3 million of restructuring and restructuring related charges, and $0.9 million of accelerated depreciation on buildings and equipment related to restructuring within the F&E segment.
Adjusted net income for the second quarter 2022 was $10.6 million or $0.17 per share compared to $25.7 million or $0.39 per share in the second quarter 2021.
Consolidated net sales in the second quarter 2022 were $576.3 million, representing a decrease of 10.5% compared to $643.6 million for the three months ended April 30, 2021. The decrease in consolidated net sales was primarily due to lower net sales in the Fire and Emergency and Commercial segments partially offset by an increase in net sales in the Recreation segment.
Analysts polled by Thomson Reuters expected earnings of $0.23 per share on revenue of $595.59 million for the quarter. Analysts’ estimate typically exclude certain special items.
“Second quarter results reflect continuing shortages of key components and lower chassis supply that limited new starts, throughput, and completions,” REV Group Inc. President and CEO Rod Rushing said.
Updated FY22 Guidance
The company now see full-year fiscal 2022 net sales of $2.25 billion – $2.4 billion, net income of $14 million – $35 million, adjusted net income of $43 million – $62 million, free cash flow of $58 million – $70 million, and adjusted EBITDA of $100 million – $120 million.
Five Wall Street analysts have a consensus earnings estimate of $1.08 per share and revenue of $2.44 billion for fiscal 2022.
Previously, the company expected 2022 net sales of $2.3 billion – $2.55 billion, net income of $45 million – $73 million, Adjusted Net Income of $64 million – $89 million, Free Cash Flow of $58 million – $80 million, and Adjusted EBITDA of $125 million – $155 million.
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