Camping World Earnings Preview: What to Expect from CWH

Camping World is set to announce Q2 earnings on Tuesday, with analysts expecting a 4% YoY revenue growth to $1.88 billion and adjusted EPS of $0.60. The company missed revenue expectations by 1% last quarter but beat EPS estimates. Camping World has missed revenue estimates six times over the last two years, but peers in the automotive and marine retail segment have reported positive results.

Camping World (NYSE:CWH), a leading recreational vehicle (RV) and boat retailer, is scheduled to announce its Q2 earnings on Tuesday. Analysts anticipate a 4% year-over-year (YoY) revenue growth to $1.88 billion, with adjusted earnings per share (EPS) expected to be $0.60. The company reported revenues of $1.41 billion in the previous quarter, up 3.6% YoY, but missed revenue expectations by 1% [1][2].

Camping World has a history of beating EPS estimates, as seen in the previous quarter where it exceeded analyst expectations. However, the company has missed revenue estimates six times over the last two years [1][2]. Despite this, peers in the automotive and marine retail segment have reported positive results. For instance, CarMax delivered year-on-year revenue growth of 6.1%, meeting analysts’ expectations, and Genuine Parts reported revenues up 3.4%, topping estimates by 0.9% [1][2].

The majority of analysts covering Camping World have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings [1][2]. The company is heading into earnings with an average analyst price target of $20.83, compared to the current share price of $18.06 [1][2]. The positive sentiment among investors in the automotive and marine retail segment, with share prices up 8.9% on average over the last month, also indicates optimism about Camping World's prospects [1][2].

The market expects Camping World to deliver a year-over-year increase in earnings on higher revenues. The consensus estimate is for quarterly earnings of $0.58 per share, representing a 52.6% year-over-year change, with revenues expected to be $1.89 billion, up 4.5% from the year-ago quarter [3].

While the consensus estimate remains unchanged over the last 30 days, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting recent bearishness among analysts regarding Camping World's earnings prospects. This results in an Earnings ESP of -4.63% [3]. The stock currently carries a Zacks Rank of #4, making it difficult to conclusively predict an earnings beat [3].

Investors should pay attention to other factors beyond earnings beats or misses for betting on this stock or staying away from it ahead of its earnings release. An earnings beat or miss may not be the sole basis for a stock moving higher or lower, and many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors [3].

References:
[1] https://ca.finance.yahoo.com/news/camping-world-earnings-look-cwh-030330612.html
[2] https://finance.yahoo.com/news/camping-world-earnings-look-cwh-030330612.html
[3] https://www.nasdaq.com/articles/camping-world-cwh-reports-next-week-wall-street-expects-earnings-growth