Rev Group Inc (NYSE:REVG) stock fell 1.99% (As on December 14, 11:26:44 AM UTC-4, Source: Google Finance) though the company reported better-than-expected fourth quarter and full-year fiscal 2023 earnings. The recreation segment benefited from increased industry pricing, strong market reception of the new product introductions and a relatively low 2023 mile. Improved efficiencies and volume leverage also contributed to strong margin performance in the Commercial and Recreation segments within the fire and emergency segment increased production rates. Their shipments from the ambulance group resulted in improved price realization to fiscal 2023. The company expects higher group shipments to begin experiencing similar tailwinds in the second half of fiscal 2024. An increase in commercial segment sales were primarily the result of increased production school buses, terminal trucks and street sweepers and pricing actions, partially offset by fewer shipments and an unfavorable mix of municipal transit buses. The decrease in Recreation segment sales was a result of fewer unit shipments and unfavorable mix of gas units that carry lower selling price and discounting in certain categories, partially offset by price realization.

REVG in the fourth quarter of FY 23 has reported an 11.2% year-on-year increase in sales to $693.3 million while full-year sales increased 13.1% to $2.64 billion. Analysts had expected sales of $658.3 million and $2.6 billion respectively. Diluted adjusted earnings per share for 4Q and the year were $0.53 and $1.36, above expectations of $0.34 and $1.17 and up from $0.28 and $0.81 in the previous comparable periods, respectively. Adjusted Net Income for the fourth quarter 2023 was $31.7 million compared to Adjusted Net Income of $16.2 million, in the fourth quarter 2022. F&E segment net sales were $339.1 million in the fourth quarter 2023, an increase of $86.1 million, from $253.0 million in the fourth quarter 2022. Commercial segment net sales were $139.7 million in the fourth quarter 2023, an increase of $28.8 million from $110.9 million in the fourth quarter 2022. Recreation segment net sales were $215.2 million in the fourth quarter 2023, a decrease of $44.9 million from $260.1 million in the fourth quarter 2022. Cash and cash equivalents totaled $21.3 million as of October 31, 2023. Capital expenditures in the fourth quarter 2023 were $13.1 million compared to $8.9 million in the fourth quarter 2022.

For fiscal 2024, REV Group said it was “optimistic,” projecting net sales between $2.6 billion and $2.7 billion and income between $71 million and $90 million.