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Things to Consider Ahead of Winnebago's (WGO) Q2 Earnings

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Winnebago Industries (WGO - Free Report) is set to release second-quarter fiscal 2021 results on Mar 24, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.37 and $804 million, respectively.

One of the leading recreational vehicle (RV) maker posted better-than-expected earnings in the last reported quarter on higher-than-anticipated contribution from both its Towable and Motorhome segments. Over the trailing four quarters, Winnebago surpassed the Zacks Consensus Estimate on three occasions and missed once, with the average positive surprise being 39.37%. This is depicted in the graph below:

Winnebago Industries, Inc. Price and EPS Surprise

 

Winnebago Industries, Inc. Price and EPS Surprise

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

Trend in Estimate Revisions

The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings per share has been revised upward by 14 cents in the past 90 days. This compares favorably with the year-ago earnings of 67 cents per share, indicating a whopping 104.4% rise. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 28.2%.

Earnings Whispers

Our proven model predicts an earnings beat for Winnebago this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Winnebago has an Earnings ESP of +7.69%. This is because the Most Accurate Estimate of $1.48 per share is 11 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Winnebago — whose peers include Thor Industries (THO - Free Report) , REV Group, Inc. (REVG - Free Report)  and LCI Industries (LCII - Free Report) — carries a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

With RVs seeming to be the safest travel option amid pandemic-related social distancing, demand for Winnebago’s products are expected to have risen year over year. Importantly, the quarterly results are anticipated to benefit from the acquisitions of Grand Design, Newmar and Chris-Craft businesses. Apart from higher sales, Winnebago’s fiscal second-quarter earnings are likely to have risen on increased focus on operational efficiency.

The Zacks Consensus Estimate for Towable segment revenues is pegged at $352 million, indicating a year-over-year rise of 24%. Strong consumer demand for Grand Design and Winnebago’s product lines is likely to have driven revenues. The consensus mark for the segment’s adjusted EBITDA stands at $55 million, calling for an improvement over $34.7 million recorded in the year-ago quarter.

The Consensus Estimate for revenues at the Motorhome segment is pinned at $507 million, indicating year-over-year growth of 55.5% on the Newmar buyout. The consensus mark for the unit’s adjusted EBITDA is pegged at $26.7 million, suggesting an increase from $14.5 million registered in the comparable quarter of fiscal 2020.

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