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Winnebago's (WGO) Q4 Earnings & Revenues Trump Estimates

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Winnebago Industries Inc. (WGO - Free Report) reported earnings of 94 cents per share in the fourth quarter of fiscal 2018 (ended Aug 25, 2018), beating the Zacks Consensus Estimate of 86 cents. In the year-ago period, earnings were 79 cents per share. Net income rose 19.5% year over year to $29.8 million.
Revenues in the reported quarter climbed 17.9% to $536.2 million from $454.9 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $514 million.
Operating income in the quarter under review rose 5.1% to $45.7 million from $43.5 million in the year-ago quarter. Gross profit improved to $83.8 million from $73.6 million a year ago.

For 2018, earnings per share were $3.22, up 38.8% year over year.
Full-year revenues of $2 billion increased 30.4% year over year driven by continued growth at the Towable segment.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise


Segment Results

Revenues at the Motorized segment rose 2.5% to $228.5 million from the year-ago period. Adjusted EBITDA dropped 18.8% to $13.2 million.

Revenues at the Towable segment improved 26.2% to $288.7 million from 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 $41.9 million, up 23.9% from the prior-year quarter.

Financial Position

Winnebago had cash and cash equivalents of $2.34 million as of Aug 25, 2018, compared with $35.9 million as of Aug 26, 2017.

For the first nine months of fiscal 2018, Winnebago’s cash flow from operations was $83.3 million compared with $97.1 million during the same period in fiscal 2017.

In a year’s time, shares of Winnebago have outperformed the industry it belongs to. Its stock has declined 40% in comparison with the industry’s fall of 44.6%.


Zacks Rank and Stocks to Consider

Winnebago currently has a Zacks Rank #4 (Sell).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Navistar International Corporation (NAV - Free Report) . While both Allison Transmission Holdings and Volvo sport a Zacks Rank #1 (Strong Buy), Navistar has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past two years, shares of the company have surged 72.3%.

Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have risen 36.4%.

Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 50.9%.

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