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Winnebago (WGO) Up More Than 5% on Big Q3 Earnings Beat

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Winnebago Industries, Inc. (WGO - Free Report) reported third-quarter fiscal 2022 (ended May 28, 2022) adjusted earnings per share of $4.13, surpassing the Zacks Consensus Estimate of $3.01 and surging 84% year over year. This outperformance can be attributed to higher-than-anticipated revenues across all segments. This recreational vehicle (RV) maker reported revenues of $1,458 million for the quarter under review, outpacing the Zacks Consensus Estimate of $1,204 million. The top line also grew 52% year over year. Shares of the company rose 5.73%, following the robust results.

Segmental Performance

Revenues in the Towable segment for the reported quarter soared 45% year over year to $805.6 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $704 million. Quarterly adjusted EBITDA rose 47% year on year to $117.8 million, courtesy of favorable pricing and operational discipline. Backlog in the segment amounted to $1,312 million (31,606 units), down 13.7% year over year.

For the reported quarter, revenues in the Motorhome segment improved 34% year over year to $516.3 million, thanks to strong demand for Newmar and Winnebago branded products. The revenues also outpaced the Zacks Consensus Estimate of $408 million. The segment recorded an EBITDA of $64.4 million, jumping 71.9%. The segment’s backlog was $2,285 million (15,180 units), increasing 4.8% year on year.

For the reported quarter, revenues in the Marine segment were $126.5 million, shooting up 637% year over year, largely driven by the Barletta buyout. The metric also came ahead of the consensus mark of $99 million. The segment recorded an EBITDA of $19.8 million, rocketing 1,120% year over year. The segment’s backlog was $245.4 million (2,491 units), soaring 122.2% year on year.

Financials 

Winnebago had cash and cash equivalents of $238 million as of May 28, 2022, down from $434.6 million on Aug 28, 2021. Long-term debt (excluding current maturities) totaled $541.4 million, down from $528.6 million recorded on Aug 28, 2021.

During the quarter under review, Winnebago repurchased shares of $70 million. It approved a payout of 18 cents a share, payable on Jun 29, 2022, to shareholders of record as of Jun 8, 2022. Winnebago currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Snapshots of Peer Releases

Winnebago’s closest peer Thor Industries (THO - Free Report) unveiled third-quarter fiscal 2022 results on Jun 8. The RV maker posted adjusted earnings of $6.32 per share, which beat the Zacks Consensus Estimate of $4.97. The bottom line jumped 92% from the year-ago profit of $3.29 per share. The company registered revenues of $4,657.5 million for the quarter under review, topping the Zacks Consensus Estimate of $4,173 million. The top line also recorded a 34.6% year-over-year increase.

As of Apr 30, 2022, Thor had cash and cash equivalents of $331.9 million and long-term debt of $1,983.6 million. The consolidated backlog as of quarter-end was $13.88 billion, reflecting a year-over-year decline of 3%. Thor currently carries a Zacks Rank #3.

REV Group (REVG - Free Report) , a manufacturer of industry-leading specialty vehicles, posted fiscal second-quarter 2022 results on Jun 7. The company came out with quarterly earnings of 17 cents per share, missing the Zacks Consensus Estimate of 27 cents. The bottom line also compared unfavorably with earnings of 39 cents per share a year ago. Revenues of $576 million for the quarter ended April 2022 fell short of the Zacks Consensus Estimate of $605 million. The top line also deteriorated from $644 million recorded in the comparable year-ago period.  

As of Apr 30, 2022, REV Group had cash and cash equivalents of $5.9 million and long-term debt of $243 million. REVG forecasts fiscal 2022 net sales in the band of $2.25-$2.4 billion. Net income is envisioned in the range of $43-$62 million. Free cash flow is expected to be between $58 million and $70 million. REV Group currently carries a Zacks Rank #3.


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