![]() The surprising part of the report was the loss. New RV sales fell by more than 13%, but used sales fell only 4.8% and are supported by solid pricing. OEMs like Thor Industries (NYSE: THO) and Winnebago (NYSE: WGO) report much higher double-digit declines in new vehicle demand, expected to linger throughout the year.Ĭamping World’s exposure to used vehicles and after-market sales helped to offset weakness in the new segment. The revenue, which declined 7.1%, outpaced the consensus by nearly 500 basis points proving the resiliency of the business in the face of a broader industry slowdown. Camping World Sets Up For SustainabilityĬamping World issued mixed results for FQ4, but the takeaways are all positive. Investors should not expect a robust dividend increase, as has happened the last year or so. The dividend payout ratio is running slightly high but is also covered at 60% of adjusted earnings. The debt is a concern, but coverage is sufficient at this time. Until then, Camping World pays a robust 10% dividend yield that management has indicated a desire to preserve. Provided this company can continue generating cash flow it should be able to continue expanding and then, down the road, work on its debt. It uses debt to leverage its growth, but it is now manageable. The Q4 results aren’t fantastic, and they come with a surprising loss, but also with proactive efforts to adjust to changing times that promise sustainability over the long term. Whether it was fear of slowing sales or an issue with the dividend, those fears were misplaced. The market for Camping World (NYSE: CWH) fell sharply on February 21st, the day before the Q4 results were released, but this move was misplaced. eBay Faces Growing Competition and Eroding Market Share.Are China Internet Stocks Set Up To Rally In The Second Quarter?.Here’s What Happens When a Stock is Removed from an Index.Latest Tech Layoffs at Dell May Provide Buying Opportunity.Why Wall Street Is Still So Constructive on Aecom Stock.Is Unity Software Earnings Fallout a Buying Opportunity?.Occidental Petroleum: What Would Warren Buffett Do?.Crowdstrike Stock: While The Iron Is Hot!.Should You Park Some Capital with Casey’s General Stores?.Is Chip Design Specialist Synopsys A Gem Hiding In Plain Sight?.Penny Stock Vinco Ventures Could Be Big Winner.Home Depot Stock Earnings Slide, Long Term Value Still There.NVIDIA Stock Confirms Reversal Headed Higher?.Has Rivian Stock Reached a Buyable Bottom?.The Trader's Guide to Equities Research.
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