Camping World (NYSE:CWH) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Camping World Holdings, Inc. (NYSE:CWH) is scheduled to report Q3 earnings results before markets open for trading on November 2, 2020.

The company is expected to report earnings of $1.13/share on revenue of $1.5 billion. The consensus earnings per share (EPS) of $1.13/share is based on a poll of 8 analysts and represents a growth in eps of 704.5% over the same quarter last year, when the company reported earnings of $0.14/share.

The revenue forecast of $1.5 billion based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 8.1%. Last year the company reported $1.388 billion in revenue for the quarter.

Expected to report EPS growth of 704.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,499.91 $1,387.97 8.1%
EPS $1.13 $0.14 704.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 5 quarters.

What are your expectations from Camping World Holdings, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.64 $1.62 151.6% Beat
Q1, 2020 -$0.12 -$0.03 75.9% Beat
Q4, 2019 -$0.25 -$0.35 -37.3% Missed
Q3, 2019 $0.36 $0.14 −61.5% Missed
Q2, 2019 $0.66 $0.54 −18.7% Missed
Q1, 2019 $0.16 -$0.67 507.1% Beat
Q4, 2018 $0.19 -$0.26 −237.6% Missed
Q3, 2018 $0.61 $0.49 −19.5% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −15.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $39.06 $33 −15.5% Decline
May 7, 2020 $10.39 $14 34.7% Increase
February 27, 2020 $14.54 $13.68 −5.9% Decline
November 7, 2019 $9.80 $10.61 8.3% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.25, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.25 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

Camping World Holdings, Inc. is currently trading at $27.31/share, down −3.1% for the day. The company is trading at approximately 64.3% of its 52-week high of $42.49/share. The company’s stock price is down −17.2% since the last earnings report and down −12.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 33.57 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CWH Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −111.31 and a forward P/E multiple of 4.20.

Camping World Holdings, Inc.’s current share price also implies a price-to-book (P/B) multiple of 291.64. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $27.31
P/E Ratio −111.3x
P/E Ratio (Fwd) 4.2x
PEG Ratio −2.4
Total Debt / Total Capital 51.1%
Levered Free Cash Flow $625.1 million
EV / EBITDA 10.3x

Finbox

Camping World Holdings, Inc. is a small-cap stock with a market capitalization of $1.035 billion and a total enterprise value of $3.286 billion. The company operates in the Consumer Discretionary sector and the Specialty Retail industry.

Camping World Holdings, Inc., through its subsidiaries, operates as an outdoor and camping retailer. The company operates through three segments: Consumer Services and Plans, Dealership, and Retail. It provides a portfolio of services, protection plans, products, and resources for recreational vehicle (RV) owners and camping enthusiasts. It provides emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; travel protection; co-branded credit cards; vehicle financing and refinancing; club memberships; and publications and directories. The company also offers new and used RVs, parts and services, including RV accessories and supplies; camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersport equipment, and supplies; finance and insurance; and RV repair and maintenance services. As of December 31, 2018, it operated a network of 227 retail locations in 36 states of the United States. The company also serves customers through e-commerce platforms and direct marketing. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.