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Why Is Winnebago (WGO) Up 13.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 13.7% 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 Q4 Earnings & Revenues Fall Y/Y
Winnebago delivered adjusted earnings of $1.59 per share for fourth-quarter fiscal 2023 (ended Aug 26, 2023), which topped the Zacks Consensus Estimate of $1.32. However, the bottom line fell by 47.4% year over year. The company reported revenues of $771 million in the quarter under review, missing the Zacks Consensus Estimate of $775 million. The top line also fell by 34.6% year over year.
Segmental Performance
Revenues in the Towable RV segment fell 30.9% year-over-year to $341.4 million, primarily led by a decline in unit volume. However, the metric surpassed our estimate of $321.5 million due to higher-than-expected total deliveries. Total deliveries from the segment came in at 7,711 units, decreasing 26.3% year over year but beating our estimate of 6,822 units. Adjusted EBITDA declined 19.7% to $42.7 million, reflecting a higher discount and allowance and volume deleverage. The figure came ahead of our estimate of $27.1 million. The segment’s backlog was $208.1 million (5,111 units), decreasing 63.9%.
In the reported quarter, revenues in the Motorhome RV segment slid 42.8% year-over-year to $317.7 million due to a decline in unit volume. The top line, however, surpassed our estimate of $317.5 million. The total deliveries from the segment came at 1,590 units, down 51.7% year over year and missing our estimate of 1,989 units. The segment recorded an adjusted EBITDA of $22.4 million, down 71.1% and lagged our estimate of $28.2 million. The backlog was $688.6 million (3,828 units), down 59.2% from the prior year.
Revenues in the Marine segment were $96.4 million, decreasing 21% year over year, primarily driven by lower unit sales. The metric also lagged our estimate of $125.4 million due to lower-than-expected deliveries. The total deliveries from the segment came at 1,162 units, down 26.5% year over year and lagged our estimate of 1,533 units. The segment recorded an adjusted EBITDA of $10.3 million, down 41.4% year over year but exceeding our estimate of $10.1 million. The backlog for the Marine segment was $194.7 million (2,545 units), down 38.1%.
Financials
Winnebago had cash and cash equivalents of $309.9 million as of Aug 26, 2023. Long-term debt (excluding current maturities) increased to $592.4 million from $545.9 million, recorded on Aug 27, 2022. The company hiked its dividend by 4 cents per share to 31 cents, which will be paid on Sep 27, 2023, to shareholders of record at the close of business on Sep 13, 2023. The company bought back $30 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 -11.87% due to these changes.
VGM Scores
Currently, Winnebago has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second 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. It's no surprise Winnebago has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Winnebago (WGO) Up 13.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have added about 13.7% 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 Q4 Earnings & Revenues Fall Y/Y
Winnebago delivered adjusted earnings of $1.59 per share for fourth-quarter fiscal 2023 (ended Aug 26, 2023), which topped the Zacks Consensus Estimate of $1.32. However, the bottom line fell by 47.4% year over year. The company reported revenues of $771 million in the quarter under review, missing the Zacks Consensus Estimate of $775 million. The top line also fell by 34.6% year over year.
Segmental Performance
Revenues in the Towable RV segment fell 30.9% year-over-year to $341.4 million, primarily led by a decline in unit volume. However, the metric surpassed our estimate of $321.5 million due to higher-than-expected total deliveries. Total deliveries from the segment came in at 7,711 units, decreasing 26.3% year over year but beating our estimate of 6,822 units. Adjusted EBITDA declined 19.7% to $42.7 million, reflecting a higher discount and allowance and volume deleverage. The figure came ahead of our estimate of $27.1 million. The segment’s backlog was $208.1 million (5,111 units), decreasing 63.9%.
In the reported quarter, revenues in the Motorhome RV segment slid 42.8% year-over-year to $317.7 million due to a decline in unit volume. The top line, however, surpassed our estimate of $317.5 million. The total deliveries from the segment came at 1,590 units, down 51.7% year over year and missing our estimate of 1,989 units. The segment recorded an adjusted EBITDA of $22.4 million, down 71.1% and lagged our estimate of $28.2 million. The backlog was $688.6 million (3,828 units), down 59.2% from the prior year.
Revenues in the Marine segment were $96.4 million, decreasing 21% year over year, primarily driven by lower unit sales. The metric also lagged our estimate of $125.4 million due to lower-than-expected deliveries. The total deliveries from the segment came at 1,162 units, down 26.5% year over year and lagged our estimate of 1,533 units. The segment recorded an adjusted EBITDA of $10.3 million, down 41.4% year over year but exceeding our estimate of $10.1 million. The backlog for the Marine segment was $194.7 million (2,545 units), down 38.1%.
Financials
Winnebago had cash and cash equivalents of $309.9 million as of Aug 26, 2023. Long-term debt (excluding current maturities) increased to $592.4 million from $545.9 million, recorded on Aug 27, 2022. The company hiked its dividend by 4 cents per share to 31 cents, which will be paid on Sep 27, 2023, to shareholders of record at the close of business on Sep 13, 2023. The company bought back $30 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 -11.87% due to these changes.
VGM Scores
Currently, Winnebago has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second 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. It's no surprise Winnebago has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.