RideNow Group (NASDAQ:RDNW) Issues Quarterly Earnings Results

RideNow Group (NASDAQ:RDNW) issued its earnings results on Tuesday. The company reported $0.16 EPS for the quarter, FiscalAI reports. RideNow Group had a negative return on equity of 2,628.57% and a negative net margin of 4.28%.The business 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 Price Performance

Shares of NASDAQ:RDNW opened at $6.51 on Wednesday. RideNow Group has a 1-year low of $2.28 and a 1-year high of $8.55. The company has a market capitalization of $251.22 million, a P/E ratio of -5.25 and a beta of 1.18. The firm’s 50 day simple moving average is $6.68 and its two-hundred day simple moving average is $6.67.

Institutional Trading of RideNow Group

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

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of RideNow Group in a report on Friday, July 17th. Wall Street Zen lowered shares of RideNow Group from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Finally, Robert W. Baird raised their price objective on shares of RideNow Group from $7.00 to $9.00 and gave the stock a “neutral” rating in a report on Friday, May 15th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $7.50.

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.