RideNow Group (NASDAQ:RDNW) Announces Quarterly Earnings Results

RideNow Group (NASDAQ:RDNW) issued its quarterly earnings data on Tuesday. The company reported $0.16 earnings per share (EPS) for the quarter, FiscalAI reports. RideNow Group had a negative return on equity of 2,628.57% and a negative net margin of 0.76%.The company had revenue of $296.80 million for the quarter.

Here are the key takeaways from RideNow Group’s conference call:

• Q2 adjusted EBITDA rose 19.2% year over year to $20.5 million, while same-store revenue increased 3% to $291.5 million. Management cited ongoing cost discipline, operational improvements, and the fourth consecutive quarter of same-store unit and revenue growth.
• Gross profit improved by $1.1 million, supported by stronger new-vehicle margins of 14.8% versus 13.2% a year ago, while adjusted SG&A declined 3.3%. First-half adjusted EBITDA increased to $29.8 million from $23.2 million.
• RideNow ended the quarter with $63.1 million of cash and approximately $158.2 million of total liquidity, including floorplan availability. The company also secured a new $20 million used-vehicle floorplan facility and expanded capacity for new products.
• Management said refinancing efforts have made substantial progress but are not yet complete; additional details are expected in the coming weeks. Completing the refinancing is described as a prerequisite to more actively pursuing accretive acquisitions and returning to growth.
• Total revenue declined to $296.8 million and unit sales fell 2.9% year over year, primarily because the company operated five fewer stores. Management also noted that early Q3 same-store sales were down slightly in the low single digits amid continued macroeconomic volatility, while pre-owned unit volume and margins weakened.

RideNow Group Stock Down 2.4%

Shares of NASDAQ:RDNW traded down $0.15 during trading on Thursday, hitting $6.21. 36,044 shares of the company traded hands, compared to its average volume of 76,321. The business’s fifty day moving average is $6.66 and its 200-day moving average is $6.67. The stock has a market capitalization of $239.64 million, a price-to-earnings ratio of -27.00 and a beta of 1.18. RideNow Group has a one year low of $2.85 and a one year high of $8.55.

Analyst Ratings Changes

Several brokerages recently issued reports on RDNW. Wall Street Zen cut RideNow Group from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Robert W. Baird boosted their target price on shares of RideNow Group from $7.00 to $9.00 and gave the company a “neutral” rating in a research note on Friday, May 15th. Weiss Ratings restated a “sell (d-)” rating on shares of RideNow Group in a report on Friday, July 17th. Finally, DA Davidson decreased their price target on shares of RideNow Group from $9.00 to $8.00 and set a “neutral” rating on the stock in a report on Wednesday. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $8.50.

Hedge Funds Weigh In On RideNow Group

Hedge funds and other institutional investors have recently modified their holdings of the company. City State Bank acquired a new position in RideNow Group during the 4th quarter valued at about $26,000. Qube Research & Technologies Ltd acquired a new position in shares of RideNow Group during the second quarter worth approximately $52,000. Dimensional Fund Advisors LP acquired a new position in shares of RideNow Group during the fourth quarter worth approximately $64,000. Balyasny Asset Management L.P. bought a new position in RideNow Group in the 4th quarter worth approximately $66,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in RideNow Group in the 4th quarter valued at approximately $69,000. Institutional investors and hedge funds own 66.14% of the company’s stock.

About RideNow Group

RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company’s dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.

Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.