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Winnebago (WGO) Up 12.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 12.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Q3 Earnings Top Estimates, Revenues Miss
Winnebago delivered adjusted earnings of $2.13 per share for third-quarter fiscal 2023 (ended May 27, 2023), which topped the Zacks Consensus Estimate of $1.74 on higher-than-expected EBITDA across Towable and Marine segments. However, the bottom line fell by 48.4% year over year. The recreational vehicle (RV) maker reported revenues of $900.8 million in the quarter under review, missing the Zacks Consensus Estimate of $951 million. The top line also fell by 38.2% year over year.
Segmental Performance
Revenues in the Towable RV segment in the reported quarter fell 52.3% year over year to $384.1 million, primarily led by a decline in unit volume. The Zacks Consensus Estimate for the same was $384.69 million. Total deliveries from the segment came in at 8,715 units, decreasing 50.7% year over year but beating the consensus metric of 7,262 units. Adjusted EBITDA declined 54.3% to $53.8 million, reflecting higher discount and allowance and deleverage. The figure came ahead of the consensus mark of $32.09 million. The segment’s backlog was $236 million (5,297 units), decreasing 82%.
In the reported quarter, revenues in the Motorhome RV segment slid 27.5% year over year to $374.4 million due to a decline in unit volume. The top line also missed the consensus mark of $444.36 million. The total deliveries from the segment came at 2,131 units, down 33.4% year over year and missing the consensus metric of 2,547 units. The segment recorded an adjusted EBITDA of $26.8 million, down 58.3% and also lagging the consensus mark of $39.31 million. The backlog was $800.4 million (4,595 units), down 65% from the prior year.
In the reported quarter, revenues in the Marine segment were $129 million, increasing 1.9% year over year, primarily driven by carryover price increases. The metric also outpaced the consensus mark of $121.65 million. The total deliveries from the segment came at 1,586 units, down 4.2% year over year but outpacing the consensus metric of 1,549 units. The segment recorded an adjusted EBITDA of $17.3 million, down 12.5% year over year but exceeding the consensus metric of $12.12 million. The backlog for the Marine segment was $146.3 million (1,348 units), down 40.4%.
Financials
Winnebago had cash and cash equivalents of $225.9 million as of May 27, 2023. Long-term debt (excluding current maturities) increased to $591.7 million from $545.9 million, recorded on Aug 27, 2022. The company approved a dividend of 27 cents per share, to be paid on Jun 28, 2023, to shareholders of record at the close of business on Jun 14, 2023. The company bought back $20 million in shares during the quarter under review.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -15.83% due to these changes.
VGM Scores
Currently, Winnebago has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Winnebago has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Winnebago (WGO) Up 12.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 12.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Winnebago Q3 Earnings Top Estimates, Revenues Miss
Winnebago delivered adjusted earnings of $2.13 per share for third-quarter fiscal 2023 (ended May 27, 2023), which topped the Zacks Consensus Estimate of $1.74 on higher-than-expected EBITDA across Towable and Marine segments. However, the bottom line fell by 48.4% year over year. The recreational vehicle (RV) maker reported revenues of $900.8 million in the quarter under review, missing the Zacks Consensus Estimate of $951 million. The top line also fell by 38.2% year over year.
Segmental Performance
Revenues in the Towable RV segment in the reported quarter fell 52.3% year over year to $384.1 million, primarily led by a decline in unit volume. The Zacks Consensus Estimate for the same was $384.69 million. Total deliveries from the segment came in at 8,715 units, decreasing 50.7% year over year but beating the consensus metric of 7,262 units. Adjusted EBITDA declined 54.3% to $53.8 million, reflecting higher discount and allowance and deleverage. The figure came ahead of the consensus mark of $32.09 million. The segment’s backlog was $236 million (5,297 units), decreasing 82%.
In the reported quarter, revenues in the Motorhome RV segment slid 27.5% year over year to $374.4 million due to a decline in unit volume. The top line also missed the consensus mark of $444.36 million. The total deliveries from the segment came at 2,131 units, down 33.4% year over year and missing the consensus metric of 2,547 units. The segment recorded an adjusted EBITDA of $26.8 million, down 58.3% and also lagging the consensus mark of $39.31 million. The backlog was $800.4 million (4,595 units), down 65% from the prior year.
In the reported quarter, revenues in the Marine segment were $129 million, increasing 1.9% year over year, primarily driven by carryover price increases. The metric also outpaced the consensus mark of $121.65 million. The total deliveries from the segment came at 1,586 units, down 4.2% year over year but outpacing the consensus metric of 1,549 units. The segment recorded an adjusted EBITDA of $17.3 million, down 12.5% year over year but exceeding the consensus metric of $12.12 million. The backlog for the Marine segment was $146.3 million (1,348 units), down 40.4%.
Financials
Winnebago had cash and cash equivalents of $225.9 million as of May 27, 2023. Long-term debt (excluding current maturities) increased to $591.7 million from $545.9 million, recorded on Aug 27, 2022. The company approved a dividend of 27 cents per share, to be paid on Jun 28, 2023, to shareholders of record at the close of business on Jun 14, 2023. The company bought back $20 million in shares during the quarter under review.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -15.83% due to these changes.
VGM Scores
Currently, Winnebago has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Winnebago has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.