Shares of Camping World Holdings (CWH -3.53%) were moving higher today after the nation's largest retailer of RVs and accessories posted better-than-expected results in its third-quarter earnings report.
As of 12:42 p.m. ET, the stock was up 8.8% on the news.
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New vehicles surge at Camping World
Overall revenue at Camping World was essentially flat in the quarter, with revenue falling 0.3% to $1.72 billion, which compared to estimates at $1.64 billion.
Growth was driven by new-vehicle sales, which were up 21.5% to $824.9 million, a sign of solid customer demand. However, used-vehicle sales were down 24.2% to $447.2 million. Same-store unit sales were up 2.3%, its first positive growth in that category in 10 quarters.
Management has been working to control used-vehicle inventory, which explains the decline in sales, but it sees a return to growth in the used segment next year.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 28.9% to $67.5 million. Adjusted earnings per share fell from $0.39 to $0.13, but that beat estimates at $0.11.
Matt Wagner, president of Camping World Holdings, said, "As we drive toward 2025, our calculated approach to inventory has yielded market-leading results." He projected used unit growth in the low double digits in 2025.
What's next for Camping World?
Camping World didn't give specific guidance in the earnings report, but Wagner's comments show that the business seems to be accelerating into 2025.
Management also said that same-store volume trends in October were improving, with flat growth in the used segment and new units up double digits.
Camping World is a cyclical business, and lower interest rates should give it going into next year. The business is expected to return to profitability, and the stock should move higher if it can continue to top estimates.
