One of America's largest retailers of recreational vehicles, Camping World Holdings Inc. CWH, released strong third-quarter results on Monday morning.
The RV retailer and service provider posted revenue of $1.67 billion, up 21% from the same quarter last year. Diluted earnings per share settled at $1.44, well surpassing analyst estimates that hovered around $1.10 per share.
Revenue saw part of its big boost thanks in part to strong vehicle sales throughout the quarter. New vehicle sales were up over 4,500 units year over year, a 24.7% increase. Used vehicles boosted sales by a small 4.7% in comparison, up 469 units throughout the quarter.
Marcus Lemonis, chairman and CEO of Camping World Holdings, said, "I am very pleased with our team's performance in the third quarter. Coming off of an extremely positive second quarter, demand remained strong and we were able to achieve record breaking third quarter results with net income of $155 million and Adjusted Ebitda of $217 million. Our ability to focus on fundamentals including maximizing gross margins and maintaining expense controls was key to our success in the quarter. Our year to date net income was $304 million and Adjusted Ebitda was $474 million."
The company's board of directors also authorized a stock repurchase program. Under this new program, the company will be able to repurchase up to $100 million in Class A common stock, which expires on Oct. 31, 2022. Repurchases under the new program will be allowed through both the open market and in privately negotiated transactions.
As of Nov. 11, the stock was trading at $26.60 per share with a market cap of $2.39 billion. According to the GF Value line, the stock is currently trading at a significantly overvalued level due to the large spikes shares have seen this year.
Top gurus invested in the stock include David Abrams (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio)' Renaissance Technologies, Paul Tudor Jones (Trades, Portfolio) and Steven Cohen (Trades, Portfolio).
Disclosure: Author owns no stocks mentioned.
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