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Winnebago (WGO) Q2 Earnings Beat on Towable Unit Strength

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Winnebago Industries, Inc. (WGO - Free Report) reported second-quarter fiscal 2022 (ended Feb 26, 2022) adjusted earnings per share of $3.14, surpassing the Zacks Consensus Estimate of $3.06 and surging 48% year over year. This outperformance can be attributed to higher-than-anticipated revenues from the Towable segment.

This recreational vehicle maker reported revenues of $1,164.7 million for the quarter under review, outpacing the Zacks Consensus Estimate of $1,002 million. The top line also grew 38.7% 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 47.2% year over year to $646.6 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $590 million. Quarterly adjusted EBITDA rose 61.3% year on year to $100.6 million, courtesy of favorable pricing and operational discipline. Backlog in the segment amounted to $1,873 million (47,438 units), up 55.2% year over year.

For the reported quarter, revenues in the Motorhome segment improved 9.1% year over year to $417.6 million, thanks to strong demand for Newmar and Winnebago branded products. The revenue figure, however, missed the Zacks Consensus Estimate of $438 million. The segment recorded an EBITDA of $46.1 million, declining 9.6% year over year on high commodity costs and manufacturing inefficiencies. The segment’s backlog was $2,214 million (17,255 units), increasing 22% year on year, highlighting surging consumer demand during the reported quarter.

For the reported quarter, revenues in the Marine segment were $97.3 million, jumping 572.8% year over year, largely driven by the Barletta buyout. The segment recorded an EBITDA of $13 million, rocketing 1,165% year over year. The segment’s backlog was $277.9 million (3,059 units), soaring 283% year on year.

Financials 

Winnebago had cash and cash equivalents of $134.8 million as of Feb 26, 2022, down from $434.6 million on Aug 28, 2021. Long-term debt (excluding current maturities) totaled $536.9 million, slightly up from $528.6 million recorded on Aug 28, 2021.

During the quarter under review, Winnebago repurchased shares of $40 million. It approved a payout of 18 cents a share, payable on Apr 27, 2022, to shareholders of record as of Apr 13, 2022. Winnebago — whose peers include Thor Industries (THO - Free Report)  and REV Group, Inc. (REVG - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Highlights of the Quarterly Results of WGO’s Peers

Thor announced first-quarter fiscal 2022 results on Mar 9. The company posted adjusted earnings of $4.79 per share, which beat the Zacks Consensus Estimate of $3.40. The bottom line jumped 101.3% from the year-ago profit of $2.38 per share. The company registered revenues of $3,875 million for the quarter under review, topping the Zacks Consensus Estimate of $3,553 million. The top line also recorded a 42.1% year-over-year increase.

As of Jan 31, 2022, Thor had cash and cash equivalents of $330.3 million and long-term debt of $2,167.7 million. Consolidated backlog as of quarter-end was $17.73 billion, reflecting a year-over-year rise of 60%. Thor currently carries a Zacks Rank of 3.

REV Group posted fiscal first-quarter 2022 results on Mar 9. The company came out with quarterly earnings of 13 cents per share, beating the Zacks Consensus Estimate of 12 cents on the back of higher-than-expected sales from the Commercial and Recreation segments. This compares unfavorably with earnings of 14 cents per share a year ago. Revenues of $537 million for the quarter ended January 2022 surpassed the Zacks Consensus Estimate by 2.14%. Revenues of $554 million were recorded a year ago. 

REVG reiterated its full-year fiscal 2022 guidance of net sales in the band of $2.3-$2.55 billion. Net income is envisioned in the range of $45-$73 million. Free cash flow is expected between $58 million and $80 million. REV Group currently carries a Zacks Rank #3.


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