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Winnebago (WGO) Q1 Earnings & Sales Top Estimates, Up Y/Y

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Winnebago Industries, Inc. (WGO - Free Report) reported first-quarter fiscal 2022 (ended Nov 27, 2021) adjusted earnings per share of $3.51, surpassing the Zacks Consensus Estimate of $2.29 and surging 97% year over year. This outperformance can be attributed to higher-than-anticipated revenues across both Towable and Motorhome segments.

This recreational vehicle maker reported revenues of $1,155.7 million for the quarter under review, outpacing the Zacks Consensus Estimate of $1,004 million. The top line also grew 45.7% year over 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 soared 43.1% year over year to $651 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $542 million. Quarterly adjusted EBITDA rose 77.5% year on year to $112 million, courtesy of favorable pricing and operational discipline. Backlog in the segment amounted to $1,874.8 million (48,759 units), up a whopping 116.6% year over year.

For the reported quarter, revenues in the Motorhome segment improved 30.7% year over year to $421.5 million, thanks to strong demand for Newmar and Winnebago branded products. The revenue figure also surpassed the Zacks Consensus Estimate of $410 million. The segment recorded an EBITDA of $50.2 million, jumping 65.3% year over year. The segment’s backlog was $2,412.6 million (18,826 units), increasing 41.2% year on year, highlighting surging consumer demand during the reported quarter.

Financials 

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 $211.4 million as of Nov 27, 2021, down from $434.6 million on Aug 28, 2021. Long-term debt (excluding current maturities) totaled $532.8 million, slightly up from $528.6 million recorded on Aug 28, 2021.

During the quarter under review, Winnebago repurchased shares of $19.6 million. It approved a payout of 18 cents a share, payable on Jan 26, 2022, to shareholders of record as of Jan 12, 2022. With this announcement, WGO has paid a quarterly cash dividend for the trailing 30 quarters. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights From Quarterly Results of WGO’s Peers

Thor announced first-quarter fiscal 2022 results on Dec 8. The company posted adjusted earnings of $4.34 per share, which beat the Zacks Consensus Estimate of $3.10. The bottom line jumped 111.7% from the year-ago profit of $2.05 per share. Revenues of $3,958.2 million topped the Zacks Consensus Estimate of $3,397 million and grew 56% on a year-over-year basis.

Thor had cash and cash equivalents of $339.3 million and long-term debt of $2,232.3 million as of Oct 31, 2021. Consolidated backlog as of quarter-end was $18.07 billion, reflecting a year-over-year rise of 100%. THO currently carries a Zacks Rank #3 (Hold).

LCI Industries reported third-quarter 2021 results on Nov 2. The company posted adjusted earnings per share of $2.50, topping the Zacks Consensus Estimate of $2.47. Revenues of $1,165.3 million surpassed the consensus mark of $1,075 million. While the top line improved 40.7% year over year, EPS slid 8% year over year.

LCI Industries had cash and cash equivalents of $72.6 million as of Sep 30. Long-term debt amounted to $1,012.1 million, up from $720.4 million recorded as of Dec 31, 2020. LCII currently carries a Zacks Rank #2 (Buy).

REV Group posted fourth-quarter fiscal 2021 results on Dec 15. The company generated adjusted earnings of 27 cents per share, which missed the consensus mark of 29 cents. The bottom line, however, improved from 19 cents a share recorded in the year-ago period. Revenues of $590 million topped the consensus estimate of $583 million but dipped 4.2% year over year.

REV Group had cash and cash equivalents of $13.3 million as of Oct 31,2021. Long-term debt amounted to $215 million, down from $340.5 million recorded as of Oct 31, 2020. REVG currently carries a Zacks Rank #3.