REV Group, Inc. (REVG) Accused of Failing to Effectively Manage Its Backlog of Vehicles
According to the complaint, REV Group, Inc. (REVG) claimed to deliver high quality products with customized attributes tailored to its customers’ product specifications, while reducing costs and shortening delivery lead times. However, REV’s margins were being negatively impacted by lower sales of high margin products, including custom fire apparatus, large commercial buses, and Class A RVs. On June 6, 2018, REV announced that its second quarter 2018 results were below expectations, citing cost inflation across many of the commodities and services the company buys and the unavailability of chassis, among other things. REV also lowered its full year 2018 guidance, predicting full year 2018 revenue of $2.4 to $2.6 billion compared to $2.4 to $2.7 billion announced earlier, and net income of $72 to $87 million, compared to $90 to $110 million announced earlier. On this news, REV’s stock fell nearly 19% to close at $14.52 per share on June 7, 2018—34% below the company’s $22 IPO price.
REV Group, Inc. (REVG) Shareholders Have Legal Options
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