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Winnebago (WGO) Q3 Loss Narrower Than Expected, Sales Top

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Winnebago Industries, Inc. (WGO - Free Report) reported a loss of 26 cents per share in third-quarter fiscal 2020, narrower than the Zacks Consensus Estimate of a loss of 41 cents. Higher-than-expected revenues from the Motorhome segment led to the outperformance. However, earnings of $1.14 a share were recorded in the year-ago quarter. Weak demand and disruptions across dealer network and supply chain due to coronavirus woes impacted the firm.

Precisely, sales from the Motorhome unit came in at $203.6 million, surpassing the Zacks Consensus Estimate of $170 million.

Revenues in the reported quarter decreased 24% year over year to $402.4 million. The top line, however, beat the Zacks Consensus Estimate of $326 million. The company recorded higher year-over-year operating expenses amid increased amortization costs. The firm incurred operating loss of $8.1 million against the year-ago income of $48.9 million. 

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote

Segment Results

Revenues in the Towable segment declined 45.5% year over year to $188.9 million due to manufacturing suspension and lower consumer demand amid the coronavirus pandemic. Adjusted EBITDA plunged 71.2% year over year to $16.5 million.Backlog increased 86.7% year over year with 13,235 units as of May 30, reflecting a strong rebound in dealer demand in the month.

Revenues in the Motorhome segment improved 27.1% year over year to $203.6 million driven by the Newmar buyout, partly offset by COVID-19 woes. Excluding the impact of the acquisition, revenues decreased 27.9% from the prior-year period. The segment recorded a negative EBITDA of $10.8 million. However, the metric narrowed from the year-ago quarter’s $11.2 million negative EBITDA.Backlog increased 99.2% year over year to 4,131 units due to the addition of Newmar and a strong rebound in dealer demand in May.

Financials & Dividend

Winnebago — whose peers include Thor Industries (THO - Free Report) , Skyline Champion Corporation (SKY - Free Report) and LCI Industries (LCII - Free Report) — had cash and cash equivalents of $152.5 million as of May 30, 2020. Long-term debt totaled $451.3 million, up from $245.4 million recorded on Aug 31, 2019.

The Zacks Rank #2 (Buy) firm approved a quarterly dividend of 11 cents per share, payable on Jul 1 to shareholders of record as of Jun 17, 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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