Winnebago Industries (WGO - Free Report) reported adjusted earnings of 93 cents per share for second-quarter fiscal 2024 (ended Feb 24, 2024), beating the Zacks Consensus Estimate of 86 cents but plummeting 50.5% year over year. The recreational vehicle (“RV”) maker reported revenues of $703.6 million for the quarter under review, outpacing the Zacks Consensus Estimate of $703 million. The top line, however, fell 18.8% year over year.
Segmental Performance
Towable RV: Revenues in the Towable RV segment fell 16.9% year over year to $284.7 million, primarily due to a reduction in unit volumes and average selling price. The metric also missed our estimate of $303.4 million. Total deliveries from the segment came in at 6,747 units, decreasing 9.3% year over year but beating our estimate of 6,330 units. Adjusted EBITDA declined 31.8% to $26.8 million owing to deleverage and increased warranty costs. The figure, however, came ahead of our estimate of $24.5 million. The segment’s backlog was $222.3 million (5,273 units), decreasing 20.1%.
Motorhome RV: Revenues in the Motorhome RV segment slid 16.2% year over year to $338.4 million due to a decline in unit volume, high discounts and an unfavorable product mix. The top line, however, outpaced our estimate of $272.3 million. Total deliveries from the Motorhome RV segment came in at 1,811 units, down 16.4% year over year but surpassing our estimate of 1,446 units. The segment recorded an adjusted EBITDA of $26 million, down 38.9% due to deleveraging, high warranty costs, operational challenges and increased discounts. The metric, however, beat our estimate of $17 million. The backlog was $452.2 million (2,582 units), down 48.2% from the prior year.
Marine: Revenues in the segment were $69.8 million, decreasing 38.2% year over year, primarily due to lower unit sales and unfavorable product mix. The metric also lagged our estimate of $86.5 million. The total deliveries from the segment came in at 862 units, down 32% year over year and lagged our estimate of 1,003 units. The segment recorded an adjusted EBITDA of $4.4 million, down 69.7% year over year due to deleverage and higher discounts. The metric lagged our estimate of $6.9 million. The backlog for the Marine segment was $102.9 million (1,194 units), down 57%.
Financials
Winnebago had cash and cash equivalents of $265.7 million as of Feb 24, 2024. Long-term debt (excluding current maturities) increased to $694.8 million from $592.4 million recorded on Aug 26, 2023. During the quarter, Winnebago completed a $350 million offering of convertible senior notes for refinancing maturing obligations due in 2025.
Future Growth Targets
Winnebago has set ambitious mid-cycle organic growth goals. It targets net revenues between $4.5 billion and $5.0 billion, gross margin of 18-18.5%, and adjusted EBITDA margin in the band of 11-11.5%.
The company aims to secure a North American RV market share exceeding 13% and a U.S. aluminum pontoon market share of 13% while striving for an organic non-RV revenue mix comprising 15% to 20% of total revenues. Free cash flow is anticipated to be within the range of $325 million to $375 million.
Peer Releases
THOR Industries, Inc. (THO - Free Report) reported fiscal second-quarter 2024 results on Mar 6. Earnings per share of 40 cents missed the Zacks Consensus Estimate of 69 cents and contracted 20% year over year. The company registered revenues of $2.21 billion for the quarter under review, lagging the Zacks Consensus Estimate of $2.30 billion. The top line declined 5.9% year over year.
As of Jan 31, 2024, Thor had cash and cash equivalents of $340.2 million and long-term debt of $1.39 billion. It projects its fiscal 2024 consolidated net sales in the range of $10-$10.5 billion.
REV Group, Inc. (REVG - Free Report) reported fiscal first-quarter 2024 results on Mar 6. Earnings per share of 25 cents surpassed the Zacks Consensus Estimate of 9 cents and rocketed 108% year over year. The company registered revenues of $586 million for the quarter under review, outpacing the Zacks Consensus Estimate of $577 million. In the year-ago period, revenues totaled $583.5 million.
As of Jan 31, 2024, REV Group had cash and cash equivalents of $87.9 million. It projects its fiscal 2024 consolidated net sales in the range of $2.45-$2.55 billion.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Winnebago Industries (WGO - Free Report) reported adjusted earnings of 93 cents per share for second-quarter fiscal 2024 (ended Feb 24, 2024), beating the Zacks Consensus Estimate of 86 cents but plummeting 50.5% year over year. The recreational vehicle (“RV”) maker reported revenues of $703.6 million for the quarter under review, outpacing the Zacks Consensus Estimate of $703 million. The top line, however, fell 18.8% year over year.
Segmental Performance
Towable RV: Revenues in the Towable RV segment fell 16.9% year over year to $284.7 million, primarily due to a reduction in unit volumes and average selling price. The metric also missed our estimate of $303.4 million. Total deliveries from the segment came in at 6,747 units, decreasing 9.3% year over year but beating our estimate of 6,330 units. Adjusted EBITDA declined 31.8% to $26.8 million owing to deleverage and increased warranty costs. The figure, however, came ahead of our estimate of $24.5 million. The segment’s backlog was $222.3 million (5,273 units), decreasing 20.1%.
Motorhome RV: Revenues in the Motorhome RV segment slid 16.2% year over year to $338.4 million due to a decline in unit volume, high discounts and an unfavorable product mix. The top line, however, outpaced our estimate of $272.3 million. Total deliveries from the Motorhome RV segment came in at 1,811 units, down 16.4% year over year but surpassing our estimate of 1,446 units. The segment recorded an adjusted EBITDA of $26 million, down 38.9% due to deleveraging, high warranty costs, operational challenges and increased discounts. The metric, however, beat our estimate of $17 million. The backlog was $452.2 million (2,582 units), down 48.2% from the prior year.
Marine: Revenues in the segment were $69.8 million, decreasing 38.2% year over year, primarily due to lower unit sales and unfavorable product mix. The metric also lagged our estimate of $86.5 million. The total deliveries from the segment came in at 862 units, down 32% year over year and lagged our estimate of 1,003 units. The segment recorded an adjusted EBITDA of $4.4 million, down 69.7% year over year due to deleverage and higher discounts. The metric lagged our estimate of $6.9 million. The backlog for the Marine segment was $102.9 million (1,194 units), down 57%.
Financials
Winnebago had cash and cash equivalents of $265.7 million as of Feb 24, 2024. Long-term debt (excluding current maturities) increased to $694.8 million from $592.4 million recorded on Aug 26, 2023. During the quarter, Winnebago completed a $350 million offering of convertible senior notes for refinancing maturing obligations due in 2025.
Future Growth Targets
Winnebago has set ambitious mid-cycle organic growth goals. It targets net revenues between $4.5 billion and $5.0 billion, gross margin of 18-18.5%, and adjusted EBITDA margin in the band of 11-11.5%.
The company aims to secure a North American RV market share exceeding 13% and a U.S. aluminum pontoon market share of 13% while striving for an organic non-RV revenue mix comprising 15% to 20% of total revenues. Free cash flow is anticipated to be within the range of $325 million to $375 million.
Peer Releases
THOR Industries, Inc. (THO - Free Report) reported fiscal second-quarter 2024 results on Mar 6. Earnings per share of 40 cents missed the Zacks Consensus Estimate of 69 cents and contracted 20% year over year. The company registered revenues of $2.21 billion for the quarter under review, lagging the Zacks Consensus Estimate of $2.30 billion. The top line declined 5.9% year over year.
As of Jan 31, 2024, Thor had cash and cash equivalents of $340.2 million and long-term debt of $1.39 billion. It projects its fiscal 2024 consolidated net sales in the range of $10-$10.5 billion.
REV Group, Inc. (REVG - Free Report) reported fiscal first-quarter 2024 results on Mar 6. Earnings per share of 25 cents surpassed the Zacks Consensus Estimate of 9 cents and rocketed 108% year over year. The company registered revenues of $586 million for the quarter under review, outpacing the Zacks Consensus Estimate of $577 million. In the year-ago period, revenues totaled $583.5 million.
As of Jan 31, 2024, REV Group had cash and cash equivalents of $87.9 million. It projects its fiscal 2024 consolidated net sales in the range of $2.45-$2.55 billion.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on THO - FREE
Get the latest research report on WGO - FREE
Get the latest research report on REVG - FREE