Automobile Components LCI Industries Misses Q4 Expectations, But Bets Big on RV Boom
Portfolio Pulse from Lekha Gupta
LCI Industries Inc (NYSE:LCII) reported a Q4 FY23 revenue of $837.5 million, a 6% decline Y/Y, missing consensus estimates by a slight margin. The decline was attributed to decreased North American marine production levels, lower selling prices, and reduced North American RV wholesale shipments. However, aftermarket net sales rose 10% Y/Y, and January 2024 net sales increased 13% Y/Y, mainly due to a 57% increase in North American RV production. The company also reported a gross profit increase and a positive operating profit, contrasting with the previous year's loss. Despite these positive indicators, LCII's EPS of $(0.09) missed consensus estimates. The company highlighted its new product launches and nearly $200 million in net new business commitments for 2024.
February 13, 2024 | 5:51 pm
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NEUTRAL IMPACT
LCI Industries reported a Q4 revenue decline but saw aftermarket sales rise and a significant increase in January 2024 net sales, mainly from North American RV production. Despite missing EPS estimates, the company is optimistic about its new product launches and has secured nearly $200 million in net new business for 2024.
The mixed Q4 results, with a revenue decline but positive signs in aftermarket sales and future RV production, suggest a neutral short-term impact on LCII's stock price. The missed EPS estimates could concern investors, but the optimism for 2024, driven by new product launches and significant new business commitments, may balance the sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100