Powering past analysts' expectations, REV Group (REVG 4.58%) reported strong second-quarter 2025 financial results this week. Wall Street was also impressed. An analyst's auspicious outlook provided investors with another catalyst to buy the specialty vehicle manufacturer's stock.
According to data provided by S&P Global Market Intelligence, shares of REV Group are up 14.5% from the end of last Friday's trading session through market close yesterday.
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Beating expectations was just part of the story
Reporting Q2 2025 revenue of $629.1 million and adjusted diluted earnings per share (EPS) of $0.70, REV Group surpassed the consensus sales and adjusted EPS estimates of $603.5 million and $0.57, respectively. According to its press release, manufacturing growth with respect to the company's fire fighting-related vehicles drove the company's strong performance last quarter.
In addition, REV Group upwardly revised 2025 guidance. While it originally projected 2025 revenue of $2.3 billion to $2.4 billion, it now foresees sales of $2.35 billion to $2.45 billion. The company also projects more robust free cash flow, raising its 2025 projection to $100 million to $120 million from the original guidance of $90 million to $110 million.
Impressed with the company's financial results, DA Davidson analyst Michael Shlisky raised his price target on REV Group stock yesterday, keeping a buy rating and lifting the price target to $51 from $39.
Is it the right time to go for a ride with REV Group?
After soaring 41.9% since the start of the year, REV Group is now trading at 21.3 times operating cash flow. At this point, investors may want to watch the stock from the side of the road instead of choosing to park it in their portfolios.
