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]

Financial Performance - Camping World Holdings, Inc. reported a revenue of $1.2 billion for the nine months ended September 30, 2024, representing a 5% increase compared to the same period in 2023[1]. - Total revenue for the three months ended September 30, 2024, was $1,724,988, a decrease of 0.3% compared to $1,729,613 for the same period in 2023[111]. - Total revenue for the nine months ended September 30, 2024, was $4,895,510, a decrease of 4.3% compared to $5,117,214 for the same period in 2023[165]. - The company reported a net loss attributable to Camping World Holdings, Inc. of $(7,035,000) for the nine months ended September 30, 2024, compared to a net income of $47,833,000 for the same period in 2023[201]. - Net income for the nine months ended September 30, 2023, was $100,519, compared to a net loss of $19,336 for the same period in 2024[20]. - The company reported a net income attributable to Camping World Holdings, Inc. of $5,501, a decline of 65.5% from $15,961 in the same period last year[138]. - The net income allocated to Camping World Holdings, Inc. for the three months ended September 30, 2024, was $8.056 million, compared to $30.893 million for the same period in 2023[134]. Customer Metrics - The company had 1.5 million active customers as of September 30, 2024, an increase of 10% year-over-year[2]. - Active customers decreased by 9.7% to 4,615,443, and Good Sam Club members decreased by 12.1% to 1,804,334[1][9]. Inventory and Sales - Total inventories amounted to $1,781.7 million, a decrease of 12.8% from $2,042.9 million on December 31, 2023[35]. - New RV inventory was reported at 1,189,880 units, down from 1,378,403 units as of December 31, 2023, representing a decline of 13.7%[35]. - Used RV inventory decreased to 420,727 units from 464,833 units, reflecting a reduction of 9.5%[35]. - Revenue from new vehicles increased to $824,916, up 21.5% from $679,207 year-over-year, while used vehicle revenue decreased by 24.2% to $447,242 from $590,227[14]. - New vehicle sales increased by 31.2% to 19,943 units, while used vehicle sales decreased by 17.9% to 14,065 units, resulting in a total sales increase of 5.2%[1]. Expenses and Costs - Total costs applicable to revenue for the three months ended September 30, 2023, were $1,226,464, an increase of 1.7% from $1,206,527 year-over-year[14]. - Operating expenses for the three months ended September 30, 2023, were $434,106, slightly down from $435,160 in the same period last year[14]. - Selling, general and administrative expenses increased by $23.1 million due to additional advertising expenses[179]. - The average cost per vehicle decreased by 5.6% in the three months ended September 30, 2024, contributing to the overall decrease in gross margins[124]. Strategic Initiatives - The company plans to open 10 new dealership locations in 2025, expanding its market presence significantly[4]. - The company is investing $50 million in new technology to enhance its e-commerce platform and improve customer experience[6]. - A strategic acquisition of a regional RV dealership chain is expected to close by Q1 2025, which will add approximately $200 million in annual revenue[7]. - The company has initiated a stock repurchase program with a target of $100 million over the next 12 months[8]. Financial Position and Debt - As of September 30, 2024, total assets were $4,645,224,000, down from $4,845,684,000 in December 2023[114]. - The company reported a total long-term debt of $1,506.0 million as of September 30, 2024, slightly up from $1,498.9 million at December 31, 2023[52]. - Payments on long-term debt for the nine months ended September 30, 2024, were $66.8 million, significantly higher than $26.6 million in the same period of 2023[22]. - The company incurred restructuring costs related to Active Sports Restructuring during the three and nine months ended September 30, 2023, which included one-time termination benefits and incremental inventory reserve charges[203]. Market Conditions and Trends - Inflationary pressures have led to increased costs for products and overhead, which may adversely affect operating results if selling prices do not rise proportionately[127]. - The average sale price of new vehicles decreased by 4.3% in fiscal year 2023 compared to 2022, influenced by price-sensitive customers in a high-interest rate environment[123]. - The company expects continued declines in Good Sam Club membership due to recent price increases and the introduction of a free basic plan[1][13]. Goodwill and Acquisitions - The company recorded goodwill of $30.5 million from acquisitions during the nine months ended September 30, 2024, down from $65.7 million in the same period of 2023[92]. - The divestiture of the RV furniture business resulted in a loss of $7.1 million, with total consideration received amounting to approximately $30.4 million, including $20.0 million in cash[49].

Financial Data and Key Metrics Changes - The company recorded revenue of $1.7 billion for Q3 2024, roughly flat compared to the previous year, driven by a 31% increase in new unit sales offset by an 18% decline in used unit sales [28] - Adjusted EBITDA was $67.5 million, with year-over-year variance primarily stemming from actions around used inventory procurement [32] - New vehicle gross margin was 13.5%, primarily driven by strong performance in Class C RVs, while used vehicle margins were 18.2% [29][30] Business Line Data and Key Metrics Changes - New unit sales increased by nearly 30% in July and August, continuing strong performance into September and October [22] - The Good Sam services and plans saw solid top-line growth, although growth profit comparison was impacted by a $5.5 million exit arrangement benefit in the previous year's third quarter [31] - The service and parts business showed year-over-year improvements, with customer pay work up on a single-digit percentage basis [69] Market Data and Key Metrics Changes - The company achieved nearly 11% market share in the combined new and used RV markets, with a goal to exceed 15% [19] - The used marketplace is stabilizing, with nearly the same amount of used units compared to last year, and margins improving [24] - The company anticipates used unit volumes to improve next year by low double digits year-over-year [26] Company Strategy and Development Direction - The company aims to grow through dealership acquisitions, with a clear path to increase locations from over 200 to 320 [11] - Focus on product innovation, with 36% of new unit sales coming from contract manufactured RVs exclusive to the company [13] - The strategy includes creating liquidity in the RV market and identifying underserved markets to capitalize on shifting consumer preferences [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming competitors and achieving market share growth despite macroeconomic headwinds [33] - The company is taking a conservative approach to forecasting, expecting modest increases in new unit sales and improvements in used unit margins [50][51] - Management highlighted the importance of understanding consumer payment sensitivity and the impact of interest rates on demand [49] Other Important Information - The company ended the quarter with approximately $180 million in cash and $366 million in used inventory [33] - Management emphasized the need for improved customer retention strategies for those who purchase RVs [71] - The company is focused on maintaining a disciplined approach to inventory management and market positioning [64] Q&A Session Summary Question: Outlook for modest new unit growth next year - Management expects the new market to perform better than in 2024, with continued market share gains [35] Question: Used inventory trends and procurement - The company plans to follow a normal seasonal trend for used inventory procurement, targeting a three and a half turn on used [38] Question: New RV margins and fourth-quarter expectations - Margins in the core business of travel trailers and fifth wheels were solid, with expectations for Q4 margins to be similar to Q3 [42][43] Question: Impact of storms on demand - Management noted that while some locations were affected by storms, new and same-store sales remained robust in October [44] Question: Industry outlook and potential upside/downside - Management forecasts the industry retail range to be around 350,000 to 360,000 units, with a conservative approach to interest rate cuts [49] Question: Dealership count and M&A progress - The company aims for 12 to 15 acquisitions per year, with a focus on identifying white space in the market [56][59] Question: Inventory positioning and growth confidence - The company has maintained a similar mix of model year inventory compared to last year, with confidence in pricing stability [61] Question: Competitive environment and inventory management - Management sees a divide between disciplined dealers and those with aged inventory, with no significant pressure on demand or margins [64] Question: Impact of interest rate changes - A 1% rate cut could benefit the company by up to $30 million, improving consumer confidence and potentially increasing average selling prices [66][67] Question: Parts and service performance - Customer pay work in the service segment was up on a single-digit percentage basis year-over-year [69] Question: Private label strategy - The company plans to leverage contract manufacturing to differentiate its product offerings and expand market share [74][80]

Shares of the RV retailer gained on a better-than-expected earnings report. Shares of Camping World (CWH 6.14%) were moving higher today after the nation's largest retailer of RVs and accessories posted better-than-expected results in its third-quarter earnings report. As of 12:42 p.m. ET, the stock was up 8.8% on the news. New vehicles surge at Camping World Overall revenue at Camping World was essentially flat in the quarter, with revenue falling 0.3% to $1.72 billion, which compared to estimates at $1.64 ...

Core Insights - Camping World (CWH) reported $1.73 billion in revenue for Q3 2024, a year-over-year decline of 0.3%, with an EPS of $0.13 compared to $0.39 a year ago, indicating a significant EPS surprise of +85.71% over the consensus estimate of $0.07 [1] Revenue Performance - Revenue from Good Sam Services and Plans was $50.84 million, slightly below the average estimate of $51.32 million, but showing a year-over-year increase of +1.9% [3] - Revenue from RV and Outdoor Retail for new vehicles was $824.92 million, exceeding the average estimate of $722.87 million, with a year-over-year increase of +21.5% [3] - Revenue from RV and Outdoor Retail for used vehicles was $447.24 million, below the average estimate of $458.95 million, reflecting a year-over-year decline of -24.2% [3] - Revenue from RV and Outdoor Retail's Good Sam Club was $10.90 million, compared to the average estimate of $12.06 million, representing a year-over-year decline of -1.4% [3] - Revenue from RV and Outdoor Retail finance and insurance was $166.26 million, slightly above the average estimate of $160.18 million, with a year-over-year increase of +1.6% [3] - Total revenue from RV and Outdoor Retail was $1.67 billion, surpassing the average estimate of $1.59 billion, but reflecting a year-over-year decline of -0.3% [3] - Revenue from RV and Outdoor Retail products, services, and other was $224.84 million, below the average estimate of $233.11 million, indicating a year-over-year decline of -4.6% [3] Unit Sales and Profit Metrics - Unit sales for new vehicles were 19,943, exceeding the two-analyst average estimate of 18,281 [3] - Unit sales for used vehicles were 14,065, slightly below the average estimate of 14,992 [3] - Average gross profit per unit for used vehicles was $5,771, above the average estimate of $4,947.60 [3] - Average selling price for used vehicles was $31,798, exceeding the average estimate of $29,984.01 [3] - Average gross profit per unit for new vehicles was $5,586, slightly below the average estimate of $5,790.29 [3] Stock Performance - Shares of Camping World have returned -14.1% over the past month, contrasting with the Zacks S&P 500 composite's +2% change, and the stock currently holds a Zacks Rank 3 (Hold) [4]

Camping World (CWH) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 85.71%. A quarter ago, it was expected that this recreational vehicle retailer and services provider would post earnings of $0.54 per share when it actually produced earnings of $0.38, delivering a surprise of -29.63 ...

Revenue Performance - Revenue for the third quarter was $1.7 billion, a decrease of $4.6 million, or 0.3% year-over-year[2] - New vehicle revenue increased to $824.9 million, up $145.7 million, or 21.5%, with new vehicle unit sales rising to 19,943 units, an increase of 4,738 units, or 31.2%[3] - Used vehicle revenue decreased to $447.2 million, down $143.0 million, or 24.2%, with used vehicle unit sales falling to 14,065 units, a decrease of 3,060 units, or 17.9%[3] - Same store new vehicle unit sales increased by 28.8%, while same store used vehicle unit sales decreased by 20.5%[3] - Total revenue for the three months ended September 30, 2024, was $1,724,988, a slight decrease from $1,729,613 in the same period last year, representing a decline of 0.5%[13] - New vehicle sales reached 824,916 units, up from 679,207 units year-over-year, indicating a growth of 21.5%[13] - Same store revenue for new vehicles increased by 19.2% to $737,070, while used vehicles revenue decreased by 27.6% to $399,525[14] - Total unit sales rose by 5.2% to 34,008 units, up from 32,330 units[14] Profitability Metrics - Gross profit was $498.5 million, a decrease of $24.6 million, or 4.7%, with total gross margin at 28.9%, down 134 basis points[3] - Gross profit for the three months was $498,524, down from $523,086, reflecting a decrease of 4.7%[13] - New vehicle gross margin for Q3 2024 was 13.5%, an increase from 12.0% in Q3 2019, while used vehicle gross margin fell to 18.2% from 21.1% in Q3 2019[21] - Total gross margin declined to 28.9% from 30.2% year-over-year[14] Net Income and Earnings Per Share - Net income for the third quarter was $8.1 million, a decrease of $22.8 million, or 73.9%[4] - Diluted earnings per share decreased to $0.09, down $0.23, or 71.9%[4] - Net income attributable to Camping World Holdings, Inc. was $5,501, a significant drop from $15,961 in the prior year, representing a decline of 65.5%[13] - Basic earnings per share decreased to $0.12 from $0.36, a decline of 66.7% year-over-year[13] - Net income attributable to Camping World Holdings, Inc. for the three months ended September 30, 2024, was $5,501,000, compared to a net income of $15,961,000 for the same period in 2023, representing a decrease of 65.5%[39] - Adjusted earnings per share - diluted for the three months ended September 30, 2024, was $0.13, compared to $0.39 in the same period of 2023, a decrease of 66.7%[39] Operational Metrics - The total number of store locations was 207, a net decrease of two locations from the previous year, or 1.0%[4] - Active customers decreased by 9.7% to 4,615,443 from 5,111,478[14] - New vehicle inventory per dealer location increased by 5.7% to $5,833 from $5,520[14] - Total RV and Outdoor Retail inventories decreased by 4.7% to $1,781,400 from $1,868,516[14] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2024, was $408,541 thousand, compared to $543,273 thousand for the same period in 2023, a decrease of about 24.8%[18] - Cash and cash equivalents at the end of the period were $28,380 thousand, down from $39,647 thousand at the beginning of the period, reflecting a decrease of 28.2%[18] - Total current assets decreased to $2,107,726 thousand as of September 30, 2024, down from $2,349,112 thousand in December 2023, representing a decline of approximately 10.3%[16] - Total liabilities decreased to $4,472,533 thousand as of September 30, 2024, from $4,631,477 thousand in December 2023, a reduction of approximately 3.4%[16] - Total stockholders' equity attributable to Camping World Holdings, Inc. decreased to $107,816 thousand as of September 30, 2024, from $124,584 thousand in December 2023, a decline of approximately 13.4%[16] Future Outlook - The company anticipates a meaningful recovery in used unit volume next year, exceeding low double digits growth[1] - The company continues to focus on market expansion and new product development as part of its strategic initiatives[34] Adjusted Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $67,516, compared to $94,998 for the same period in 2023, reflecting a decrease of 29.0%[31] - Adjusted EBITDA margin for the three months ended September 30, 2024, was 3.9%, down from 5.5% in the same period last year[32] - Adjusted Net Income Attributable to Camping World Holdings, Inc. is defined as net income adjusted for non-cash and other items, providing a clearer view of ongoing operating performance[35] - Adjusted net income attributable to Camping World Holdings, Inc. – diluted for the three months ended September 30, 2024, was $11,414,000, down from $33,096,000 in the same period of 2023, a decline of 65.5%[39]