Back to top

Image: Bigstock

Winnebago's (WGO) Q1 Earnings & Sales Beat Estimates, Up Y/Y

Read MoreHide Full Article

Winnebago Industries, Inc. (WGO - Free Report) reported first-quarter fiscal 2021 (ended Nov 28, 2020) adjusted earnings per diluted share of $1.69, surpassing the Zacks Consensus Estimate of earnings of $1.03. This outperformance can be attributed to the higher-than-anticipated adjusted EBITDA from the company’s Towable and Motorhome segments. Adjusted EBITDA from the Towable and Motorhome segments came in at $63.1 million and $30.3 million, respectively, beating the Zacks Consensus Estimate of $44.75 million and $22 million.

The bottom line compares favorably with the year-ago earnings of 73 cents per share, marking a year-over-year surge of 131.5%.

This recreational vehicle (RV) maker registered revenues of $793.1 million during the reported quarter, handily beating the Zacks Consensus Estimate of $742 million. Moreover, the top line recorded a 34.8% year-over-year jump.

The firm reported an operating income of $85 million compared with the year-ago income of $23.9 million, skyrocketing 255.8% year on year.

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

Segmental Performance

Revenues in the Towable segment for the reported quarter climbed 33.3% year over year to $454.9 million primarily on solid consumer demand for Grand Design and Winnebago products. The reported figure also topped the consensus mark of $402 million. Quarterly adjusted EBITDA was up 76.5% year on year to $63.1 million.

Moreover, backlog in the segment increased to $865.4 million, up a whopping 256.4%, year over year, reflecting skyrocketing consumer demand during the fiscal first quarter.

During the reported quarter, revenues in the Motorhome segment improved 42.7% year over year to $322.4 million on the Newmar buyout and stellar Class B product sales. The revenue figure, however, marginally lagged the Zacks Consensus Estimate of $324 million.  Nonetheless, excluding the impact of the acquisition, revenues increased 7% from the prior-year period.

The segment recorded an EBITDA of $30.3 million, significantly up from the year-ago quarter’s EBITDA by 225.2%. Also, the segment’s backlog increased to $1.7 billion, skyrocketing 344.9%, year on year, highlighting surging consumer demand during the reported quarter.

Costs, Financials and Dividend

Selling, general and administrative expenses for the fiscal first quarter dropped to $48.4 million from the prior-year quarter’s $51.1 million.

Winnebago had cash and cash equivalents of $272.9 million as of Nov 28, 2020, down from the $292.6 million as of Aug 29, 2020. Long-term debt (excluding current maturities) totaled $516.5 million, slightly up from the $512.6 million recorded on Aug 29, 2020.

The firm announced a quarterly cash dividend of 12 cents per share payable on Jan 27, 2021 to shareholders of record as of Jan 13, 2021.

Zacks Rank & Other Stocks to Consider

Winnebago currently flaunts a Zacks Rank #1 (Strong Buy). Shares of the company have appreciated 18.3%, year to date, while the industry has witnessed a rise of 17.1%.

Some other similar-ranked stocks in the auto space are Honda Motor (HMC - Free Report) , Lear Corporation (LEA - Free Report) and Autoliv Inc (ALV - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>