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Winnebago (WGO) Down 8.6% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Winnebago Industries, Inc. (WGO - Free Report) . Shares have lost about 8.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WGO due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Winnebago Q3 Earnings & Revenues Top Estimates, Up Y/Y
Winnebago registered earnings of $1.02 per share in the third quarter of fiscal 2018 (ended May 28, 2018), beating the Zacks Consensus Estimate of 91 cents. In the year-ago period, earnings were 61 cents per share. Net income soared 67.7% to $32.5 million.
Revenues in the reported quarter surged 18% to $562.3 million from $476.4 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $542.4 million. This upside in the top line was driven by continued growth in the Towable segment.
Operating income in the quarter under review rose 38.5% to $48.3 million from $34.9 million in the year-ago quarter. Gross profit improved to $85.5 million, increasing from $70.8 million a year ago.
Segment Results
Revenues from Motorized segment gained 3.1% to $249.2 million compared with the year-ago period. Adjusted EBITDA dropped 36% to $9.3 million.
Revenues from the Towable segment improved 33.4% to $313 in comparison with the third quarter of last fiscal. This upside was driven by strong organic growth across Grand Design RV and Winnebago-branded product lines. Adjusted EBITDA was pegged at $44 million, up 34.4% from the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $39 million as of May 26, 2018, compared with $24.4 million as of May 27, 2017.
For the first nine months of fiscal 2018, Winnebago’s cash flow from operations was $61 million compared with $67.4 million during the same period in fiscal 2017
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter.
At this time, WGO has a strong Growth Score of A, though it is lagging a bit on the momentum front with a B. The stock was also 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.
Based on our scores, the stock is equally suitable for value and growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, WGO 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) Down 8.6% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Winnebago Industries, Inc. (WGO - Free Report) . Shares have lost about 8.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WGO due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Winnebago Q3 Earnings & Revenues Top Estimates, Up Y/Y
Winnebago registered earnings of $1.02 per share in the third quarter of fiscal 2018 (ended May 28, 2018), beating the Zacks Consensus Estimate of 91 cents. In the year-ago period, earnings were 61 cents per share. Net income soared 67.7% to $32.5 million.
Revenues in the reported quarter surged 18% to $562.3 million from $476.4 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $542.4 million. This upside in the top line was driven by continued growth in the Towable segment.
Operating income in the quarter under review rose 38.5% to $48.3 million from $34.9 million in the year-ago quarter. Gross profit improved to $85.5 million, increasing from $70.8 million a year ago.
Segment Results
Revenues from Motorized segment gained 3.1% to $249.2 million compared with the year-ago period. Adjusted EBITDA dropped 36% to $9.3 million.
Revenues from the Towable segment improved 33.4% to $313 in comparison with the third quarter of last fiscal. This upside was driven by strong organic growth across Grand Design RV and Winnebago-branded product lines. Adjusted EBITDA was pegged at $44 million, up 34.4% from the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $39 million as of May 26, 2018, compared with $24.4 million as of May 27, 2017.
For the first nine months of fiscal 2018, Winnebago’s cash flow from operations was $61 million compared with $67.4 million during the same period in fiscal 2017
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter.
Winnebago Industries, Inc. Price and Consensus
Winnebago Industries, Inc. Price and Consensus | Winnebago Industries, Inc. Quote
VGM Scores
At this time, WGO has a strong Growth Score of A, though it is lagging a bit on the momentum front with a B. The stock was also 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.
Based on our scores, the stock is equally suitable for value and growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, WGO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.