Camping World (NYSE:CWH) Stock Breaks Below 50 Day Moving Average After Earnings Miss

Key Points

• Camping World shares fell below their 50-day moving average, trading as low as $4.71 after the earnings announcement.
• Q3 results missed expectations: the company lost $0.19 per share versus expected earnings of $0.14, while revenue of $1.58 billion was down 12.5% year over year, with weak RV sales cited as a key factor.
• Management is targeting more than $150 million in annualized SG&A savings and aims to generate positive free cash flow in 2027.

Camping World (NYSE:CWH - Get Free Report)'s stock price passed below its fifty day moving average during trading on Tuesday following a dissappointing earnings announcement. The stock has a fifty day moving average of $5.32 and traded as low as $4.71. Camping World shares last traded at $4.7450, with a volume of 5,031,560 shares changing hands.

The company reported ($0.19) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.33). Camping World had a negative net margin of 4.20% and a negative return on equity of 17.74%. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the previous year, the firm posted $0.43 earnings per share. Camping World's quarterly revenue was down 12.5% compared to the same quarter last year.

Camping World News Summary

Here are the key news stories impacting Camping World this week:

• Positive Sentiment: Camping World said it is targeting more than $150 million in annualized SG&A savings and expects fourth-quarter SG&A to be down by more than $50 million year over year. Management also aims to generate positive free cash flow in 2027. Article: Camping World outlines SG&A cuts and free cash flow target
• Negative Sentiment: Q3 results missed expectations: the company posted a loss of $0.19 per share against expected earnings of about $0.14, while revenue of $1.58 billion fell short of estimates and declined 12.5% year over year. Weak RV sales were cited as a key factor. Article: Weak RV sales drive worse-than-expected Q3 results
• Negative Sentiment: The company reported impairment charges for the quarter, adding to concerns about its results. Article: Camping World reports Q3 impairment charges
• Negative Sentiment: Zacks added CWH to its Rank #5 (Strong Sell) list, a negative analyst signal. Article: New Strong Sell Stocks for November 3rd

Analyst Ratings Changes

CWH has been the topic of several research reports. Weiss Ratings restated a "sell (d)" rating on shares of Camping World in a report on Friday. Raymond James Financial reiterated an "outperform" rating on shares of Camping World in a report on Monday, October 5th. KeyCorp reduced their target price on shares of Camping World from $9.00 to $8.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Wall Street Zen upgraded shares of Camping World from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Truist Financial dropped their price target on shares of Camping World from $14.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday, September 10th. Nine equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Camping World presently has an average rating of "Moderate Buy" and an average price target of $10.48.

Hedge Funds Weigh In On Camping World

A number of institutional investors have recently modified their holdings of CWH. Entropy Technologies LP lifted its holdings in shares of Camping World by 5.3% in the first quarter. Entropy Technologies LP now owns 40,792 shares of the company's stock valued at $279,000 after purchasing an additional 2,048 shares in the last quarter. World Investment Advisors raised its position in Camping World by 10.2% in the 1st quarter. World Investment Advisors now owns 22,443 shares of the company's stock valued at $153,000 after buying an additional 2,078 shares during the last quarter. Hsbc Holdings PLC raised its position in Camping World by 6.4% in the 1st quarter. Hsbc Holdings PLC now owns 36,843 shares of the company's stock valued at $252,000 after buying an additional 2,214 shares during the last quarter. Allworth Financial LP raised its position in Camping World by 777.1% in the 2nd quarter. Allworth Financial LP now owns 3,219 shares of the company's stock valued at $25,000 after buying an additional 2,852 shares during the last quarter. Finally, Public Employees Retirement System of Ohio bought a new position in Camping World during the 2nd quarter valued at $28,000. 52.54% of the stock is owned by institutional investors and hedge funds.

Camping World Price Performance

The company has a quick ratio of 0.30, a current ratio of 1.22 and a debt-to-equity ratio of 3.77. The business's 50-day moving average is $5.32 and its two-hundred day moving average is $7.36. The company has a market capitalization of $490.11 million, a P/E ratio of -1.19 and a beta of 2.21.

About Camping World

Camping World Holdings, Inc is a recreational vehicle retailer and service provider operating under the Camping World brand. The company sells new and used motorized and towable recreational vehicles, including motorhomes, travel trailers and fifth-wheel trailers, serving consumers across the United States.

In addition to vehicle sales, Camping World provides related products and services through its dealership network. These offerings include RV parts and accessories, maintenance and repair services, vehicle financing and insurance products, and other ownership-related services.

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