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Share price of Winnebago Industries, Inc. (WGO - Free Report) decreased 8.2% to $32.65 on Dec 22 due to a decline in the cash balance of the company. Winnebago recorded adjusted earnings of 60 cents per share in the first quarter (ended Nov 26, 2016) of fiscal 2017, 71.4% higher than 35 cents earned in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of 35 cents.
Net income, on a reported basis, increased 37.2% to $11.7 million or 42 cents per share from $8.6 million or 32 cents per share in the year-ago quarter.
Revenues in the first quarter rose 14.5% to $245.3 million from $214.2 million in the prior-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $221 million. The upside in the top line was driven by strong growth of the towable business, partially offset by modest decline in Motorized revenues.
Operating profit in the reported quarter rose to $18.4 million from $12.8 million in the prior-year quarter. Gross profit improved to $28.9 million or 11.8% of sales from $25.3 million or 11.8% of sales a year ago.
Revenues from Motorized segment declined 1.1% to $195.1 million due to the impact of exit from the company’s aluminum extrusion business. Adjusted EBITDA dropped 14.6% to $10 million owing to higher expenses for workers compensation and costs associated with ramp-up of the Junction City, Oregon production facility.
Revenues from the Towable segment went up to $50.2 million from $16.9 million in the first quarter of fiscal 2016. The rise was driven by higher revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA went up to $4.7 million from $1.1 million in the year-ago quarter.
Financial Position
Winnebago had cash and cash equivalents of $25.6 million as of Nov 26, 2016, compared with $85.6 million as of Aug 27, 2016
In the first three months of fiscal 2017, Winnebago’s cash outflow from operations was $150,000, compared with $8.1 million in the year-ago period. Capital expenditure increased to $3.6 million from $3.1 million in the first three months of fiscal 2016.
Dividend
On Dec 14, 2016, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Jan 25, 2017, to stockholders on record as of Jan 11.
Price Performance
In the last three months, Winnebago’s shares have gained 43.3% while the Zacks categorized Building-Mobile Manufacturing & Recreation Vehicles industry saw a 27.9% increase. The improvement was driven by growing new motorhome market traction, focus on business expansion and quality improvement.
Zacks Rank & Other Key Picks
Winnebago currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term expected growth rate of 11%.
America's Car-Mart has a long-term expected growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks' Top Investment Ideas for Long-Term Profit
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Winnebago (WGO) Q1 Earnings Beat Estimates, Improve Y/Y
Share price of Winnebago Industries, Inc. (WGO - Free Report) decreased 8.2% to $32.65 on Dec 22 due to a decline in the cash balance of the company. Winnebago recorded adjusted earnings of 60 cents per share in the first quarter (ended Nov 26, 2016) of fiscal 2017, 71.4% higher than 35 cents earned in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of 35 cents.
Net income, on a reported basis, increased 37.2% to $11.7 million or 42 cents per share from $8.6 million or 32 cents per share in the year-ago quarter.
Revenues in the first quarter rose 14.5% to $245.3 million from $214.2 million in the prior-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $221 million. The upside in the top line was driven by strong growth of the towable business, partially offset by modest decline in Motorized revenues.
Operating profit in the reported quarter rose to $18.4 million from $12.8 million in the prior-year quarter. Gross profit improved to $28.9 million or 11.8% of sales from $25.3 million or 11.8% of sales a year ago.
WINNEBAGO Price, Consensus and EPS Surprise
WINNEBAGO Price, Consensus and EPS Surprise | WINNEBAGO Quote
Segment Results
Revenues from Motorized segment declined 1.1% to $195.1 million due to the impact of exit from the company’s aluminum extrusion business. Adjusted EBITDA dropped 14.6% to $10 million owing to higher expenses for workers compensation and costs associated with ramp-up of the Junction City, Oregon production facility.
Revenues from the Towable segment went up to $50.2 million from $16.9 million in the first quarter of fiscal 2016. The rise was driven by higher revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA went up to $4.7 million from $1.1 million in the year-ago quarter.
Financial Position
Winnebago had cash and cash equivalents of $25.6 million as of Nov 26, 2016, compared with $85.6 million as of Aug 27, 2016
In the first three months of fiscal 2017, Winnebago’s cash outflow from operations was $150,000, compared with $8.1 million in the year-ago period. Capital expenditure increased to $3.6 million from $3.1 million in the first three months of fiscal 2016.
Dividend
On Dec 14, 2016, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Jan 25, 2017, to stockholders on record as of Jan 11.
Price Performance
In the last three months, Winnebago’s shares have gained 43.3% while the Zacks categorized Building-Mobile Manufacturing & Recreation Vehicles industry saw a 27.9% increase. The improvement was driven by growing new motorhome market traction, focus on business expansion and quality improvement.
Zacks Rank & Other Key Picks
Winnebago currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term expected growth rate of 11%.
America's Car-Mart has a long-term expected growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>