The chart below shows how CWH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CWH sees a +4.20% change in stock price 10 days leading up to the earnings, and a +1.73% change 10 days following the report. On the earnings day itself, the stock moves by -1.25%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Growth Capital Acquisition: Successfully raised $330 million of growth capital in October and amended RV floor plan facility with an additional 5 years and $300 million of runway.
Record Market Share Growth: Ended 2024 with record combined new and used market share at 11.2%, with expectations to set a new record at 12% in early 2025.
Used RV Market Demand: Used same store sales increased in the high teens during January, indicating strong demand and momentum in the used RV market.
Q4 Revenue Increase: Achieved revenue of $1.2 billion for Q4, a 9% increase driven by 8% growth in new unit sales and 11% growth in used unit sales.
Vehicle Growth Margin Improvement: New vehicle growth margin improved to 15.2% due to lower promotional support, while used vehicle growth margin recovered to 18.7%.
EBITDA Growth Potential: Good Sam service business recorded nearly $95 million of EBITDA, indicating solid earnings growth potential for 2025.
EBITDA Loss Improvement: Adjusted EBITDA loss improved to $2.5 million from a loss of $8.9 million last year, driven by better inventory procurement and market share gains.
Strong Financial Position: Ended the quarter with approximately $288 million in cash and significant inventory and real estate assets, indicating strong financial health.
Negative
Unit Sales Driven Revenue Growth: Revenue growth of 9% was primarily driven by an 8% increase in new unit sales and an 11% increase in used unit sales, indicating reliance on unit sales for revenue.
Adjusted EBITDA Loss Comparison: Adjusted EBITDA loss of $2.5 million compared to a loss of $8.9 million last year, showing ongoing financial challenges despite improvements.
Insurance Claim Cost Impact: Higher than expected insurance claim costs impacted SG&A, suggesting potential issues in cost management.
February Weather Impact on Sales: Weather patterns in February were erratic, which could have negatively affected sales despite a strong sales weekend.
Business Recovery Progress: The company is still in the process of reestablishing its used business, indicating that it has not yet fully recovered from previous challenges.
Consumer Affordability Concerns: The need for additional retail finance rate relief suggests that consumer affordability is a concern, which could impact future sales.
Camping World Holdings, Inc. (CWH) Q4 2024 Earnings Call Transcript
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