REV Group (REVG) reported earnings on Wed 19 Dec 18 (a/h)

** charts before earnings **

death cross earlier this year

** charts after earnings **

REV Group misses by $0.25, misses on revs; guides FY19 revs in-line; expects FebQ will be softer than the prior year as near-term challenges persist

• Reports Q4 (Oct) earnings of $0.28 per share, excluding non-recurring items, $0.25 worse than the S&P Capital IQ Consensus of $0.53; revenues fell 3.5% year/year to $659.8 mln vs the $709.6 mln S&P Capital IQ Consensus.
• Co issues in-line guidance for FY19, sees FY19 revs of $2.40-2.60 bln vs. $2.55 bln S&P Capital IQ Consensus.

Commentary:

• "We are disappointed with our financial results for fiscal year 2018. Fiscal 2018 was a year in which we were confronted with the strong headwinds from the impacts of tariffs, chassis availability, material lead time extensions and temporary labor inefficiencies....As we look to fiscal year 2019, we expect improvement in the availability of chassis and flow of raw materials. We are taking actions to increase manufacturing output to meet the ongoing strength of demand and to catch up with the delayed shipments we have experienced."
• Co enters FY19 with expectations for a return to growth in organic sales and profitability as well as significantly stronger cash flow generation and higher returns on invested capital. Co expects the strength of its financial results in FY19 to be weighted toward the second half of the year, consistent with historical trends, and that 1Q19 (Feb) will be softer than the prior year as near-term challenges persist through the end of the calendar year.