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Winnebago Industries (WGO) Down 7.6% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Winnebago Industries, Inc. (WGO - Free Report) . Shares have lost about 7.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WGO due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Q2 Earnings Lag Estimates, Revenues Top
Winnebago registered adjusted earnings of 62 cents per share in the second quarter of fiscal 2018 (ended Feb 24, 2018), missing the Zacks Consensus Estimate of 65 cents. In the year-ago period, earnings were 48 cents per share. However, net income soared 44.6% to $22.1 million.
Revenues in the reported quarter surged 26.4% to $468.4 million from $370.5 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $447 million. This upside in the top line was driven by continued strong growth in the Towable segment.
Operating profit in the period under review rose 24.2% to $35.3 million from $28.4 million in the year-ago quarter. Gross profit improved to $67.7 million, increasing from $49.3 million a year ago.
Segment Results
Revenues from Motorized segment gained 1.5% to $202 million from the year-ago period. Adjusted EBITDA decreased 62.7% to $4 million.
Revenues from the Towable segment improved 55.2% to $266.4 in comparison with the second quarter of last fiscal. This upside was driven by added revenues from the Grand Design acquisition and continued strong organic growth from Winnebago-branded products. Adjusted EBITDA was pegged at $35.3 million, up 93.8% from the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $27.4 million as of Feb 24, 2018, compared with $35.9 million as of Aug 27, 2017.
For the first half of fiscal 2018, Winnebago’s cash flow from operations was $15 million, the rise of $9.9 million from the same period in fiscal 2017. This was primarily caused due to increased earnings, partly offset by working capital changes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
At this time, WGO has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, WGO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Winnebago Industries (WGO) Down 7.6% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Winnebago Industries, Inc. (WGO - Free Report) . Shares have lost about 7.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WGO due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Q2 Earnings Lag Estimates, Revenues Top
Winnebago registered adjusted earnings of 62 cents per share in the second quarter of fiscal 2018 (ended Feb 24, 2018), missing the Zacks Consensus Estimate of 65 cents. In the year-ago period, earnings were 48 cents per share. However, net income soared 44.6% to $22.1 million.
Revenues in the reported quarter surged 26.4% to $468.4 million from $370.5 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $447 million. This upside in the top line was driven by continued strong growth in the Towable segment.
Operating profit in the period under review rose 24.2% to $35.3 million from $28.4 million in the year-ago quarter. Gross profit improved to $67.7 million, increasing from $49.3 million a year ago.
Segment Results
Revenues from Motorized segment gained 1.5% to $202 million from the year-ago period. Adjusted EBITDA decreased 62.7% to $4 million.
Revenues from the Towable segment improved 55.2% to $266.4 in comparison with the second quarter of last fiscal. This upside was driven by added revenues from the Grand Design acquisition and continued strong organic growth from Winnebago-branded products. Adjusted EBITDA was pegged at $35.3 million, up 93.8% from the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $27.4 million as of Feb 24, 2018, compared with $35.9 million as of Aug 27, 2017.
For the first half of fiscal 2018, Winnebago’s cash flow from operations was $15 million, the rise of $9.9 million from the same period in fiscal 2017. This was primarily caused due to increased earnings, partly offset by working capital changes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Winnebago Industries, Inc. Price and Consensus
Winnebago Industries, Inc. Price and Consensus | Winnebago Industries, Inc. Quote
VGM Scores
At this time, WGO has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, WGO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.