Camping World (CWH) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.55. This compares to loss of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.55%. A quarter ago, it was expected that this recreational vehicle retailer and services provider would post earnings of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of 85.71%.Over the ...

Core Insights - Camping World reported an adjusted diluted EPS of -$0.47 for Q4 2024, exceeding analysts' expectations by $0.04, representing a 7.8% beat [2] - Total revenue for the quarter was $1.2 billion, surpassing the expected $1.127 billion, marking an 8.6% year-over-year increase [2][3] - The company faced ongoing challenges in used vehicle sales and weather-related disruptions affecting customer activity [2] Financial Performance - Adjusted EPS for Q4 2024 was -$0.47, compared to -$0.51 estimated and -$0.44 in Q4 2023, reflecting a 6.8% year-over-year improvement [3] - Revenue increased to $1.2 billion from $1.109 billion in Q4 2023, an 8.6% increase [3] - Gross margin improved to 31.3% from 31.0% year-over-year [3] - Adjusted EBITDA improved significantly to -$2.5 million from -$8.9 million in Q4 2023, a 72.1% improvement [3] Sales and Margins - New vehicle sales revenue rose by 10.7% to $497.5 million, driven by an 8% increase in new unit sales [6] - Used vehicle sales increased by 8.2% to $348.1 million, with unit sales up by 11.4% [6] - The average selling price for new vehicles increased by 2.5%, while used vehicle prices declined by 2.8% [7] - New vehicle gross margin decreased by 372 basis points to 15.2%, while used vehicle gross margin increased by 368 basis points [7] - Gross profit grew by 9.7% to $376.9 million, supported by increased finance and insurance gross profit [7] Operational Insights - Operational expenditures, particularly SG&A, rose by 9.1% due to higher employee compensation and advertising expenses [8] - The company is focusing on expanding its Good Sam membership base despite recent declines in active customer numbers, which fell by 9.5%, and a 13.5% decrease in Good Sam Club membership [9] Strategic Focus - Camping World is strategically focused on expanding market share and enhancing profitability through acquisitions, including the integration of seven Lazydays locations [5] - The company aims to optimize its network and leverage Good Sam membership to boost recurring revenue streams [5] - Management anticipates continued revenue growth driven by strategic acquisitions and market share gains, with a focus on increasing RV sales and improving gross margins [10][11]

Revenue Performance - Revenue for Q4 2024 was $1.2 billion, an increase of $95.1 million, or 8.6% year-over-year[4] - Full year revenue was $6.1 billion, a decrease of $126.5 million, or 2.0%[7] - Total revenue for Q4 2024 was $1,204,464, an increase of 8.6% compared to $1,109,333 in Q4 2023[21] - Revenue from new vehicle sales reached $497,533 in Q4 2024, up 10.7% from $449,416 in Q4 2023[21] - Total revenue for the year decreased by 6.0% to $5,161,827[23] Vehicle Sales - New vehicle revenue was $497.5 million, up $48.1 million, or 10.7%, with unit sales of 11,575, an increase of 858 units, or 8.0%[4] - Used vehicle revenue was $348.1 million, an increase of $26.5 million, or 8.2%, with unit sales of 10,573, an increase of 1,081 units, or 11.4%[4] - Combined new and used vehicle unit sales reached 22,148, an increase of 1,939 units, or 9.6%[4] - New vehicle unit sales for the full year were 70,484, an increase of 11,753 units, or 20.0%[7] - Total unit sales for the year ended December 31, 2024, increased by 5.2% to 121,516 units, with new vehicle sales rising by 20.0% to 70,484 units, while used vehicle sales decreased by 10.2% to 51,032 units[23] Profitability and Loss - Adjusted EBITDA for Q4 2024 was $(2.5) million, an increase of $6.4 million, or 72.1% year-over-year[7] - Net loss for Q4 2024 was $(59.5) million, a decrease of $12.0 million, or 25.1% compared to the previous year[7] - Gross profit for Q4 2024 was $376,916, representing a 9.8% increase from $343,441 in Q4 2023[21] - The company reported a net loss attributable to Camping World Holdings, Inc. for Q4 2024 was $31,602, compared to a net loss of $14,461 in Q4 2023[21] - Adjusted EBITDA for the year ended December 31, 2024 was $178,843 thousand, down from $286,213 thousand in 2023[39] Expenses - SG&A expenses for the full year were $1.6 billion, an increase of $34.1 million, or 2.2%[8] - Total SG&A for the year ended December 31, 2024, was $1,573,117 thousand, an increase from $1,538,988 thousand in 2023[50] - SG&A excluding stock-based compensation (SBC) for the three months ended December 31, 2024, was $362,437 thousand, representing 96.2% of gross profit, slightly down from 96.6% in 2023[50] Inventory and Assets - New vehicle inventory per dealer location decreased by 12.6% to $6,086, while used vehicle inventory per dealer location decreased by 13.7% to $2,027[22] - Total RV and Outdoor Retail inventories decreased by 10.8% to $1,821,574[22] - Total assets decreased to $4,863,277 thousand in 2024 from $4,889,452 thousand in 2023, a decline of approximately 0.5%[27] Cash Flow and Liabilities - Net cash provided by operating activities was $245,159 thousand in 2024, down from $310,807 thousand in 2023, representing a decrease of about 21%[28] - Total current liabilities decreased to $1,680,952 thousand in 2024 from $1,947,839 thousand in 2023, a reduction of approximately 13.7%[27] - The company’s total liabilities decreased to $4,378,328 thousand in 2024 from $4,631,477 thousand in 2023, a decrease of approximately 5.5%[27] Shareholder Information - Basic loss per share for Q4 2024 was $(0.56), compared to $(0.32) in Q4 2023[21] - The weighted-average Class A common shares outstanding - basic for the three months ended December 31, 2024, was 56,586 thousand, compared to 44,889 thousand in 2023[46] - The adjusted weighted average Class A common shares outstanding - diluted for the year ended December 31, 2024, was 48,005 thousand, consistent with 84,972 thousand in 2023[46] Other Financial Metrics - Average selling price for new vehicles decreased by 8.6% to $40,089, and for used vehicles decreased by 9.2% to $31,624[23] - Average gross profit per unit for new vehicles decreased by 15.2% to $5,781, while used vehicles decreased by 18.5% to $5,814[23] - The company reported a net loss income margin of (4.9%) for Q4 2024, compared to (4.3%) in Q4 2023[39] - Long-lived asset impairment charges for the year 2024 amounted to $15,061 thousand, up from $9,269 thousand in 2023[39]

Group 1 - The core analysis focuses on Camping World Holdings (CWH) and its potential as an investment for 2025 [1] - Insights into the RV market are provided, indicating trends and consumer behavior that may impact Camping World's performance [1] - Management strategies and financial performance metrics are evaluated to assess the company's overall health and future prospects [1]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to guide investment decisions [2][3]. Company Analysis - Camping World (CWH) is highlighted as a potential investment opportunity, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong value characteristics [4]. - CWH has a Forward P/E ratio of 20.24, which is slightly below the industry average of 20.63, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated over the past year, reaching a high of 41.53 and a low of -46.63, with a median of 20, indicating volatility in its valuation [4]. - CWH's PEG ratio stands at 0.68, which is lower than the industry average of 0.84, further supporting the notion that the company is undervalued [5]. - The PEG ratio has varied from a high of 0.77 to a low of -1.57 over the past year, with a median of 0.74, reflecting its earnings growth expectations [5]. - Overall, the metrics suggest that Camping World is likely undervalued and stands out as one of the strongest value stocks in the market, particularly when considering its earnings outlook [6].

Core Viewpoint - Investors in the Leisure and Recreation Services sector may find Camping World (CWH) more attractive than Airbnb, Inc. (ABNB) based on valuation metrics and earnings outlook [1]. Valuation Metrics - CWH has a forward P/E ratio of 22.92, while ABNB has a forward P/E of 37.76 [5]. - CWH's PEG ratio is 0.77, indicating a more favorable growth outlook compared to ABNB's PEG ratio of 2.38 [5]. - CWH's P/B ratio is 11.21, compared to ABNB's P/B of 12.16, suggesting CWH is more undervalued relative to its book value [6]. Analyst Outlook - CWH currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ABNB has a Zacks Rank of 3 (Hold) [3]. - CWH's solid earnings outlook contributes to its superior valuation metrics, leading to a Value grade of A, whereas ABNB has a Value grade of D [6].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Camping World (CWH) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Historical EPS growth for Camping World stands at 34.4%, but projected EPS growth for this year is expected to be 318%, significantly surpassing the industry average of 23.4% [5]. Group 2: Asset Utilization - Camping World has an asset utilization ratio (sales-to-total-assets ratio) of 1.23, indicating that the company generates $1.23 in sales for every dollar in assets, compared to the industry average of 0.5, showcasing superior efficiency [6]. Group 3: Sales Growth - The company's sales are projected to grow by 7.5% this year, which is higher than the industry average growth of 5.5% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Camping World, with the Zacks Consensus Estimate for the current year increasing by 3% over the past month [8][10]. Group 5: Overall Assessment - Camping World has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors [10].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential downsides for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Spotlight - Camping World (CWH) - Camping World (CWH) has shown a price increase of 8.5% over the past four weeks, indicating growing investor interest [4] - CWH has gained 6.3% over the past 12 weeks, with a beta of 2.49, suggesting it moves 149% higher than the market in either direction [5] - CWH holds a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - CWH has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest and support price increases [7] - The stock is trading at a Price-to-Sales ratio of 0.34, suggesting it is undervalued as investors pay only 34 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides CWH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Group 1: Mobileye Global - Mobileye Global's stock has been negatively impacted by a slowdown in electric vehicle (EV) sales in China, leading to an inventory surplus among its clients [2][3] - The company reported Q3 2024 EPS of 10 cents, aligning with consensus estimates, while revenue fell 8.8% year-over-year to $486 million, but exceeded the consensus estimate of $465.27 million [3] - A significant sequential revenue increase of 11% over Q2 indicates that inventory normalization is occurring among customers [3] Group 2: VF Corp. - VF Corp. is implementing a turnaround strategy focused on improving North American sales and cutting costs, aiming to save up to $300 million by the end of fiscal 2025 [4][5] - The company reported Q2 2025 EPS of 60 cents, beating consensus estimates by 22 cents, with revenues declining 5.6% year-over-year to $2.76 billion, which still surpassed the consensus estimate of $2.72 billion [6] - Inventory reduction of 13% year-over-year contributed to a gross margin increase of 120 basis points to 52.2% [6] Group 3: Camping World - Camping World is experiencing a recovery in RV sales, aided by the Federal Reserve's interest rate cut cycle, which has positively impacted the outdoor lifestyle market [8][10] - The company reported Q3 2024 EPS of 17 cents, nearly doubling consensus estimates of 9 cents, with revenue declining only 0.3% year-over-year to $1.73 billion, surpassing the consensus estimate of $1.64 billion [8][9] - Same-store vehicle unit sales surged 28.8% year-over-year, marking the first positive sales growth in 10 quarters, while new vehicle revenue increased 21.5% year-over-year to $824.9 million [9][10]

Core Viewpoint - Camping World Holdings announced a secondary share issue of nearly 15 million shares at a price of $20.50, leading to a significant drop in its stock price by almost 12% following the announcement [1][2][5] Group 1: Share Issuance Details - The company is offering just over 14.6 million shares of its class A common stock to the public at a price that is more than $3 lower than the stock price on the day after its quarterly earnings report [2] - The underwriters, led by Goldman Sachs and JPMorgan Chase, have a 30-day option to purchase an additional 2.2 million shares [3] Group 2: Use of Proceeds - Proceeds from the share issuance will be used to acquire over 14.6 million common units from its subsidiary CWGS Enterprises, which will then use the funds for general corporate purposes, including working capital and debt retirement [4] Group 3: Market Reaction - The market reacted negatively to the announcement, as the unconventional method of raising equity through a subsidiary and the low pricing raised investor concerns [5]