REV Group Results Miss Street, Shares Slip 11%

(RTTNews) - Shares of REV Group Inc. (REVG) slipped 11% in extended trading session on Wednesday after the company's fourth-quarter results fell short of Wall Street estimates.

REV Group reported a fourth-quarter loss of $22.0 million or $0.35 per share, compared with last year's profit of $22.7 million or $0.35 per share.

The quarter's results included a $35.6 million impairment charge for the planned disposition and write-down of certain assets.

On an adjusted basis, profit for the fourth quarter was $17.6 million or $0.28 per share, down from last year's profit of $29.3 million or $0.44 per share. On average, 11 analysts polled by Thomson Reuters estimate earnings of $0.52 per share for the quarter.

Fourth-quarter sales dropped 3.5% to $659.8 million from $683.9 million. Analysts had a consensus revenue estimate of $710.09 million for the quarter.

The decline in sales was primarily the result of lower Fire & Emergency segment shipments, partially offset by sales growth in the Commercial and Recreation segments.

"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." said CEO Tim Sullivan.

Moving ahead, the company expects full-year 2019 revenues of $2.4 billion to $2.6 billion. Analysts currently estimate revenues of $2.54 billion.

REVG closed Wednesday's trading at $9.01, down $0.44 or 4.66%, on the Nasdaq. The stock further dropped $1.00 or 11.10% in the after-hours trade.