What happened

While the S&P 500 and Dow Jones Industrial Average are driving slightly higher today, shares of Rev Group (REVG 1.35%) are outpacing the market's gains and racing considerably higher. As of 12:10 p.m. ET, shares of Rev Group are up 16.6%, having retreated slightly from their earlier rise of 23.3%. 

What's fueling investors' excitement for the specialty vehicle manufacturer? The company reported fiscal fourth-quarter 2022 earnings this morning before the markets opened, providing top- and bottom-line figures that surpassed analysts' expectations. In addition, the company's auspicious 2023 forecast also is motivating investors to click the buy button.

So what

Booking Q4 2022 sales of $623.6 million for the period ended Oct. 31, Rev Group blew past analysts' sales estimate of $595 million. In addition to the surprise at the top of the income statement, investors found a shock on the bottom line. Rev Group reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $0.28, whereas analysts had estimated the company would report $0.25.

Although investors are taking note of the company's recent performance, they're also surely focused on what management foresees in the coming year. According to management, Rev Group will generate fiscal 2023 revenue between $2.4 billion and $2.5 billion. Should the company achieve the midpoint of this guidance, it will represent a return to growth. Rev Group reported 2021 and 2020 revenue of $2.33 billion and $2.38 billion, respectively.

Management expects growth on the bottom line as well -- considerably robust growth, in fact. While Rev Group reported net income of $15 million, management projects the company will report $28 million to $47 million in net income for 2023.

Now what

It's unsurprising that shares of Rev Group are flying off the shelf today. Between the company's unsurprisingly strong Q4 2022 performance and optimistic 2023 guidance, investors have high hopes for the stock's future. With shares trading at 118 times future earnings, however, investors may want to wait for a pullback before hitching a ride.