Winnebago Industries, Inc. (NYSE:WGO) shares were up 6.20% on Wednesday to $22.95 after the company printed stronger than expected quarterly earnings data. The company has a market cap of $626.15 million at 26.89 million shares outstanding. Shares have been trading in a 52-week range of $15.41 to $24.73 so price is already nearing the top.
Winnebago Industries had a quarterly earnings per share of $0.53, which is $0.08 higher than the consensus estimate of $0.45. This also represents an increase from the earnings per share of $0.43 in the same period a year ago. Revenue for the latest quarter came in at $272.1 million versus the consensus estimate of $270.46 million. Components of the earnings report indicated that the company delivered 2,917 motorhome units during the latest quarter, up 12.4% year over year while towable deliveries increased 62.4% to 1,205 units.
Both businesses had positive retail trends versus a year ago, with motorized registrations in our third quarter pushing toward a high single-digit percentage comparison and towables driving a retail increase of more than 40%,” remarked Winnebago Industries CEO Michael Happe.
Analysts predict that sales of RV units could increase 5.9% this year, promising steady revenues for Winnebago Industries. Happe credits the strong gains for the quarter to continued strong growth in towables and a moderate climb in motorized shipments. In particular, the motorized team drove a higher level of manufacturing output and addressed the heavy backlog in the previous periods. In addition, he mentioned that they plan on widening the product line-up, increasing points of distribution, and elevating service levels in towables.
Winnebago Industries is a manufacturer of recreation vehicles used primarily in leisure travel and outdoor recreation activities. It sells its products through independent dealers, primarily throughout the United States and Canada, while selling motor homes through independent dealers under the Winnebago, Itasca and Era brands names. The company also manufactures other products such as original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers, commercial vehicles and commercial transit buses.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.
