RumbleOn Inc. (NASDAQ: RMBL) jumped almost 18% on March 16, after the technology-based omnichannel internet service provider company delivered a blowout fourth-quarter results, smashing both earnings and revenues expectations.
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Q4 Outperformance
Notably, adjusted earnings of $1.35 per share more than trebled analysts’ expectations of $0.41 per share.
Furthermore, revenues jumped 46.9% year-over-year to $440.9 million and exceeded consensus estimates of $375.23 million.
The increase in revenues reflects a 164% surge in Pro forma used retail powersports revenue and an 87% growth in used retail unit sales.
FY2022 Outlook
Management provided financial guidance for FY2022.
Revenues are forecast to be in the range of $1.9 billion to $2 billion, including $0.5 billion to $0.6 billion in revenue from non-Powersports segments.
Further, the company forecasts adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $145 million driven by $20 million in investments.
CEO Comments
RumbleOn CEO, Marshall Chesrown, commented, “We are laser-focused on building an unparalleled customer experience in Powersports, and we are confident that this is the most durable way to deliver long term value to our stakeholders”.
Wall Street’s Take
Despite the upbeat Q4 results, Robert W. Baird analyst Craig Kennison decreased the price target on RumbleOn from $52 to $45 and reiterated a Buy rating on the stock.
Consensus among analysts is a Strong Buy based on three unanimous Buys. The average RumbleON price target of $51.67 implies 52.42% upside potential to current levels, at the time of writing.
Investors Weigh In
Notably, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on RumbleOn, with 11.6% of investors increasing their exposure to RMBL stock over the past 30 days.
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