REV Group, Inc. ( REVG ) shares are trading lower after the company reported third-quarter results.

Net sales of $579.4 million missed the consensus of $618.7 million. Excluding the impact of the Collins divestiture, net sales decreased 8.6% year over year due to lower net sales in the Recreational Vehicles segment.

Specialty Vehicles segment net sales fell 7.3% Y/Y while Recreational Vehicles segment net sales declined 31.3% Y/Y.

Adjusted EBITDA stood at $45.2 million, vs. $39.4 million a year ago quarter. Adjusted EPS of $0.48 exceeded the street view of $0.42.

As of July-end, net debt totaled $164.5 million, including $50.5 million cash on hand.

Dividend: The board of directors declared a regular quarterly cash dividend per share of $0.05, payable on October 11, to shareholders of record on September 27, 2024.

Outlook: REV Group ( REVG ) lowered the FY24 outlook for net sales to $2.35 billion – $2.45 billion (from $2.40 billion – $2.50 billion) vs. an estimate of $2.44 billion.

Also, the company revised the adjusted net income forecast to $76 million – $89 million (from $76 million – $90 million).

REV Group Inc. ( REVG ) President and CEO Mark Skonieczny said, “Profitability benefited from another quarter of sequential and year-over-year improvements within the fire and ambulance businesses. The continued momentum demonstrated by these businesses positions us well for the future.”

“Within the Recreational Vehicles segment, market conditions remain challenged, however, we continue to be proactive in managing our cost structure to align with end market demand and deliver operating margins in line with our expectations.”

Investors can gain exposure to the stock via Procure Disaster Recovery Strategy ETF ( FIXT ) and Cambria ETF Trust Cambria Micro And SmallCap Shareholder Yield ETF .

Price Action: REVG shares are down 10.7% at $26.99 premarket at the last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.