Back to top

Image: Bigstock

Winnebago (WGO) Q2 Earnings & Sales Top Estimates, Backlog Up

Read MoreHide Full Article

Winnebago Industries, Inc. (WGO - Free Report) reported second-quarter fiscal 2021 (ended Feb 27, 2021) adjusted earnings per share of $2.12, surpassing the Zacks Consensus Estimate of $1.39. 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 $62.4 million and $51 million, beating the Zacks Consensus Estimate of $55 million and $26.7 million, respectively.

The bottom line compares favorably with the year-ago earnings of 67 cents per share, marking a whopping surge of 216.4% year over year.

This recreational vehicle (RV) maker reported revenues of $840 million during the quarterunder review, outpacing the Zacks Consensus Estimate of $804 million. Moreover, the top line improved 34% yearoveryear.

The firm reported an operating income of $100 million compared with the year-ago income of $29.6 million, reflecting a whopping increase of 237.3% year on year.

Segmental Performance

Revenues in the Towable segment for the reported quarter surged 55% year over year to $439.3 million primarily on solid consumer demand for Grand Design and Winnebago products. The reported figure also topped the consensus mark of $352 million. Quarterly adjusted EBITDA was up 79.5% year on year to $62.4 million courtesy of favorable pricing and operational discipline. Moreover, backlog in the segment increased to 39,855 units (or $1,206 million), up a whopping 307.1%, year over year, reflecting skyrocketing consumer demand during the fiscal second quarter.

During the reported quarter, revenues in the Motorhome segment improved 17.5% year over year to $382.6 million on the Newmar buyout and stellar Class B product sales. The revenue figure, however, lagged the Zacks Consensus Estimate of $507 million.  Nonetheless, the segment recorded an EBITDA of $51 million, significantly up from the year-ago quarter’s level by 241%. Also, the segment’s backlog increased to 14,974 units (or $1,816.5 million), skyrocketing 424.3%, year on year, highlighting surging consumer demand during the reported quarter.

Financials and Dividend

Winnebago— whose peers include Thor Industries (THO - Free Report) , REV Group, Inc. (REVG - Free Report)  and LCI Industries (LCII - Free Report) — had cash and cash equivalents of $333 million as of Feb 27, 2021, up from $292.6 million as of Aug 29, 2020. Long-term debt (excluding current maturities) totaled $520.3 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 Apr 28, 2021 to shareholders of record as of Apr 14, 2021.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Published in