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Why Is Winnebago (WGO) Up 17.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 17.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Maintains Its Earnings Beat Streak in Q3
Winnebago reported third-quarter fiscal 2022 (ended May 28, 2022) adjusted earnings per share of $4.13, surpassing the Zacks Consensus Estimate of $3.01 and surging 84% year over year. This outperformance can be attributed to higher-than-anticipated revenues across all segments. This recreational vehicle (RV) maker reported revenues of $1,458 million for the quarter under review, outpacing the Zacks Consensus Estimate of $1,204 million. The top line also grew 52% year over year.
Segmental Performance
Revenues in the Towable segment for the reported quarter soared 45% year over year to $805.6 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $704 million. Quarterly adjusted EBITDA rose 47% year on year to $117.8 million, courtesy of favorable pricing and operational discipline. Backlog in the segment amounted to $1,312 million (31,606 units), down 13.7% year over year.
For the reported quarter, revenues in the Motorhome segment improved 34% year over year to $516.3 million, thanks to strong demand for Newmar and Winnebago branded products. The revenues also outpaced the Zacks Consensus Estimate of $408 million. The segment recorded an EBITDA of $64.4 million, jumping 71.9%. The segment’s backlog was $2,285 million (15,180 units), increasing 4.8% year on year.
For the reported quarter, revenues in the Marine segment were $126.5 million, shooting up 637% year over year, largely driven by the Barletta buyout. The metric also came ahead of the consensus mark of $99 million. The segment recorded an EBITDA of $19.8 million, rocketing 1,120% year over year. The segment’s backlog was $245.4 million (2,491 units), soaring 122.2% year on year.
Financials
Winnebago had cash and cash equivalents of $238 million as of May 28, 2022, down from $434.6 million on Aug 28, 2021. Long-term debt (excluding current maturities) totaled $541.4 million, down from $528.6 million recorded on Aug 28, 2021.
During the quarter under review, Winnebago repurchased shares of $70 million. It approved a payout of 18 cents a share, payable on Jun 29, 2022, to shareholders of record as of Jun 8, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 13.55% due to these changes.
VGM Scores
At this time, Winnebago has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Winnebago has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Winnebago belongs to the Zacks Building Products - Mobile Homes and RV Builders industry. Another stock from the same industry, Thor Industries (THO - Free Report) , has gained 11% over the past month. More than a month has passed since the company reported results for the quarter ended April 2022.
Thor Industries reported revenues of $4.66 billion in the last reported quarter, representing a year-over-year change of +34.6%. EPS of $6.32 for the same period compares with $3.29 a year ago.
For the current quarter, Thor Industries is expected to post earnings of $4.36 per share, indicating a change of +5.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Thor Industries has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Winnebago (WGO) Up 17.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 17.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Maintains Its Earnings Beat Streak in Q3
Winnebago reported third-quarter fiscal 2022 (ended May 28, 2022) adjusted earnings per share of $4.13, surpassing the Zacks Consensus Estimate of $3.01 and surging 84% year over year. This outperformance can be attributed to higher-than-anticipated revenues across all segments. This recreational vehicle (RV) maker reported revenues of $1,458 million for the quarter under review, outpacing the Zacks Consensus Estimate of $1,204 million. The top line also grew 52% year over year.
Segmental Performance
Revenues in the Towable segment for the reported quarter soared 45% year over year to $805.6 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $704 million. Quarterly adjusted EBITDA rose 47% year on year to $117.8 million, courtesy of favorable pricing and operational discipline. Backlog in the segment amounted to $1,312 million (31,606 units), down 13.7% year over year.
For the reported quarter, revenues in the Motorhome segment improved 34% year over year to $516.3 million, thanks to strong demand for Newmar and Winnebago branded products. The revenues also outpaced the Zacks Consensus Estimate of $408 million. The segment recorded an EBITDA of $64.4 million, jumping 71.9%. The segment’s backlog was $2,285 million (15,180 units), increasing 4.8% year on year.
For the reported quarter, revenues in the Marine segment were $126.5 million, shooting up 637% year over year, largely driven by the Barletta buyout. The metric also came ahead of the consensus mark of $99 million. The segment recorded an EBITDA of $19.8 million, rocketing 1,120% year over year. The segment’s backlog was $245.4 million (2,491 units), soaring 122.2% year on year.
Financials
Winnebago had cash and cash equivalents of $238 million as of May 28, 2022, down from $434.6 million on Aug 28, 2021. Long-term debt (excluding current maturities) totaled $541.4 million, down from $528.6 million recorded on Aug 28, 2021.
During the quarter under review, Winnebago repurchased shares of $70 million. It approved a payout of 18 cents a share, payable on Jun 29, 2022, to shareholders of record as of Jun 8, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 13.55% due to these changes.
VGM Scores
At this time, Winnebago has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Winnebago has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Winnebago belongs to the Zacks Building Products - Mobile Homes and RV Builders industry. Another stock from the same industry, Thor Industries (THO - Free Report) , has gained 11% over the past month. More than a month has passed since the company reported results for the quarter ended April 2022.
Thor Industries reported revenues of $4.66 billion in the last reported quarter, representing a year-over-year change of +34.6%. EPS of $6.32 for the same period compares with $3.29 a year ago.
For the current quarter, Thor Industries is expected to post earnings of $4.36 per share, indicating a change of +5.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Thor Industries has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.