REV Group (NYSE:REVG) Sets New 1-Year High After Earnings Beat

Key Points

• REV Group shares reached a new 52-week high of $63.38 after reporting earnings of $0.79 per share, exceeding analyst expectations of $0.63.
• The company announced a quarterly dividend of $0.06, which reflects an annualized yield of 0.4% and a payout ratio of 12.77%.
• Analysts have varied ratings on REV Group, with Morgan Stanley upgrading the stock to "equal weight" and raising its price target significantly from $33.00 to $46.00.

REV Group, Inc. (NYSE:REVG - Get Free Report) shares hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $63.38 and last traded at $57.24, with a volume of 460504 shares traded. The stock had previously closed at $51.80.

The company reported $0.79 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.16. REV Group had a return on equity of 27.25% and a net margin of 4.51%.The company had revenue of $644.90 million during the quarter, compared to the consensus estimate of $613.24 million. During the same period last year, the business posted $0.48 earnings per share. REV Group's revenue was up 11.3% on a year-over-year basis. REV Group has set its FY 2025 guidance at EPS.

REV Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Friday, September 26th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Friday, September 26th. This represents a $0.24 annualized dividend and a yield of 0.4%. REV Group's dividend payout ratio (DPR) is currently 11.32%.

Analysts Set New Price Targets

REVG has been the topic of several analyst reports. Zacks Research downgraded REV Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 2nd. Robert W. Baird lifted their price objective on REV Group from $50.00 to $64.00 and gave the stock an "outperform" rating in a report on Thursday. Morgan Stanley raised REV Group from an "underweight" rating to an "equal weight" rating and raised their target price for the stock from $33.00 to $46.00 in a research note on Wednesday, June 18th. The Goldman Sachs Group raised their target price on REV Group from $26.00 to $30.00 and gave the stock a "sell" rating in a research note on Tuesday, May 27th. Finally, Wall Street Zen raised REV Group from a "buy" rating to a "strong-buy" rating in a research note on Friday, June 6th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, REV Group has a consensus rating of "Hold" and an average price target of $52.00.

Hedge Funds Weigh In On REV Group

Hedge funds have recently added to or reduced their stakes in the company. RD Lewis Holdings Inc. increased its stake in shares of REV Group by 3.0% in the 2nd quarter. RD Lewis Holdings Inc. now owns 6,900 shares of the company's stock worth $345,000 after purchasing an additional 200 shares in the last quarter. Ameritas Investment Partners Inc. boosted its holdings in REV Group by 4.3% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 5,249 shares of the company's stock worth $250,000 after buying an additional 218 shares during the period. Osaic Holdings Inc. boosted its holdings in REV Group by 2.6% in the 2nd quarter. Osaic Holdings Inc. now owns 9,545 shares of the company's stock worth $454,000 after buying an additional 239 shares during the period. Police & Firemen s Retirement System of New Jersey boosted its holdings in REV Group by 2.6% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 11,515 shares of the company's stock worth $548,000 after buying an additional 289 shares during the period. Finally, KLP Kapitalforvaltning AS boosted its holdings in REV Group by 2.6% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 11,700 shares of the company's stock worth $557,000 after buying an additional 300 shares during the period.

REV Group Price Performance

The company has a market cap of $3.03 billion, a P/E ratio of 29.30 and a beta of 1.15. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.53 and a current ratio of 1.63. The firm's fifty day moving average is $50.68 and its two-hundred day moving average is $40.54.

REV Group Company Profile

REV Group, Inc, together with its subsidiaries, designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, Spartan Fire Chassis, and Ladder Tower brand names; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brand names.