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Winnebago (WGO) Beats Q2 Earnings and Revenue Estimates
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Share price of Winnebago Industries, Inc. (WGO - Free Report) increased 6.3% to $29.55 on Mar 22, on better-than-expected earnings and revenues in the second quarter of fiscal 2017 (ended Feb 25, 2017). Winnebago recorded adjusted earnings of 46 cents per share in the second quarter 31.4% compared with 35 cents earned in the prior-year quarter. Also, the figure narrowly surpassed the Zacks Consensus Estimate of 45 cents.
Net income, on a reported basis, increased 63.3% to $15.3 million or 48 cents per share from $9.4 million or 35 cents per share in the year-ago quarter.
Revenues in the second quarter rose 64.2% to $370.5 million from $225.7 million in the prior-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $342.5 million. The upside in the top line was driven by strong growth of the Towable business, partly offset by modest decline in Motorized revenues.
Operating profit in the reported quarter rose to $28.4 million from $13.5 million in the prior-year quarter. Gross profit improved to $49.3 million or 13.3% of sales from $25.3 million or 11.2% recorded a year ago.
Revenues from Motorized segment declined 3% to $198.9 million due to lower average selling price, partly offset by higher volumes. Adjusted EBITDA dropped 22.3% to $9.1 million owing to product mix, pressure on pricing as well as accelerating operations in the West Coast.
Revenues from the Towable segment went up to $171.6 million from $20.6 million in the second quarter of fiscal 2016. The upside was driven by higher revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA went up to $20 million from $1.6 million in the year-ago quarter. The quarter marked the first full quarter of Grand Design being a part of the company.
Winnebago Industries, Inc. Price, Consensus and EPS Surprise
Winnebago had cash and cash equivalents of $10.9 million as of Feb 25, 2017 compared with $85.6 million as of Aug 27, 2016
In the first half of fiscal 2017, Winnebago’s cash flow from operations was $5.1 million compared with outflow of $8.8 million in the year-ago period. Capital expenditure decreased to $6.9 million from $16.4 million in the first half of fiscal 2016.
Dividend
On Mar 15, 2017, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Apr 26, to stockholders on record as of Apr 12.
Price Performance
In the last six months, Winnebago’s shares have gained 29.9% while the Zacks categorized Building-Mobile Manufacturing & Recreation Vehicles industry recorded a 12% increase. The share price performance was driven by growing new motorhome market traction, focus on business expansion and quality improvement.
Zacks Rank & Other Key Picks
Winnebago currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Rush Enterprises, Inc. (RUSHA - Free Report) and Titan Machinery Inc. (TITN - Free Report) .
Rush Enterprises, also flaunting a Zacks Rank #1, has a long-term expected growth rate of 15%.
Titan Machinery, carrying a Zacks Rank #2 (Buy), has a long-term expected growth rate of 16.7%.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Winnebago (WGO) Beats Q2 Earnings and Revenue Estimates
Share price of Winnebago Industries, Inc. (WGO - Free Report) increased 6.3% to $29.55 on Mar 22, on better-than-expected earnings and revenues in the second quarter of fiscal 2017 (ended Feb 25, 2017). Winnebago recorded adjusted earnings of 46 cents per share in the second quarter 31.4% compared with 35 cents earned in the prior-year quarter. Also, the figure narrowly surpassed the Zacks Consensus Estimate of 45 cents.
Net income, on a reported basis, increased 63.3% to $15.3 million or 48 cents per share from $9.4 million or 35 cents per share in the year-ago quarter.
Revenues in the second quarter rose 64.2% to $370.5 million from $225.7 million in the prior-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $342.5 million. The upside in the top line was driven by strong growth of the Towable business, partly offset by modest decline in Motorized revenues.
Operating profit in the reported quarter rose to $28.4 million from $13.5 million in the prior-year quarter. Gross profit improved to $49.3 million or 13.3% of sales from $25.3 million or 11.2% recorded a year ago.
Segment Results
Revenues from Motorized segment declined 3% to $198.9 million due to lower average selling price, partly offset by higher volumes. Adjusted EBITDA dropped 22.3% to $9.1 million owing to product mix, pressure on pricing as well as accelerating operations in the West Coast.
Revenues from the Towable segment went up to $171.6 million from $20.6 million in the second quarter of fiscal 2016. The upside was driven by higher revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA went up to $20 million from $1.6 million in the year-ago quarter. The quarter marked the first full quarter of Grand Design being a part of the company.
Winnebago Industries, Inc. Price, Consensus and EPS Surprise
Winnebago Industries, Inc. Price, Consensus and EPS Surprise | Winnebago Industries, Inc. Quote
Financial Position
Winnebago had cash and cash equivalents of $10.9 million as of Feb 25, 2017 compared with $85.6 million as of Aug 27, 2016
In the first half of fiscal 2017, Winnebago’s cash flow from operations was $5.1 million compared with outflow of $8.8 million in the year-ago period. Capital expenditure decreased to $6.9 million from $16.4 million in the first half of fiscal 2016.
Dividend
On Mar 15, 2017, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Apr 26, to stockholders on record as of Apr 12.
Price Performance
In the last six months, Winnebago’s shares have gained 29.9% while the Zacks categorized Building-Mobile Manufacturing & Recreation Vehicles industry recorded a 12% increase. The share price performance was driven by growing new motorhome market traction, focus on business expansion and quality improvement.
Zacks Rank & Other Key Picks
Winnebago currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Rush Enterprises, Inc. (RUSHA - Free Report) and Titan Machinery Inc. (TITN - Free Report) .
Allison Transmission sports a Zacks Rank #1 (Strong Buy) and has a long-term expected growth rate of 11%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Rush Enterprises, also flaunting a Zacks Rank #1, has a long-term expected growth rate of 15%.
Titan Machinery, carrying a Zacks Rank #2 (Buy), has a long-term expected growth rate of 16.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>