Back to top

Image: Bigstock

Winnebago (WGO) Earnings, Revenues Beat Estimates in Q1

Read MoreHide Full Article

Winnebago Industries Inc. (WGO - Free Report) reported earnings of 70 cents per share in the first quarter of fiscal 2019 (ended Nov 24, 2018), beating the Zacks Consensus Estimate of 57 cents. In the year-ago period, earnings were 57 cents a share. Net income rose 23.4% year over year to $22.2 million.

Revenues in the reported quarter climbed 9.7% to $493.6 million from $450 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $445 million.

Operating income in the quarter under review rose 4.6% to $32.6 million from $31.2 million in the year-ago quarter. Gross profit improved to $71 million from $62.8 million a year ago.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Segment Results

Revenues at the Motorized segment were down 3.6% to $181.3 million from a year ago. Adjusted EBITDA rose 144.4% to $12 million.

Revenues at the Towable segment improved 12.8% to $292.8 million year over year. The upside was driven by strong organic growth across Grand Design RV and Winnebago-branded product line and pricing. Adjusted EBITDA was $30.8 million, down 7.7% from the prior-year quarter.

Financial Position

Winnebago had cash and cash equivalents of $702 million as of Nov 24, 2018, compared with $2.34 million as of Aug 25, 2018.

For the first quarter of fiscal 2019, Winnebago’s cash flow from operations was $54.2 million compared with $29.4 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 59.2% in comparison with the industry’s fall of 66.2%.



Zacks Rank and Stocks to Consider

Winnebago currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Fox Factory Holding Corp. (FOXF - Free Report) , Tesla, Inc. (TSLA - Free Report) and Cooper Tire & Rubber Company . Fox Factory and Tesla currently sport a Zacks Rank #1 (Strong Buy) while Cooper Tire carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 17.9%. Shares of the company have risen 20.5% over the past six months.
    
Tesla has an expected long-term growth rate of 35%. Shares of the company have gained 5.2% over the past three months.

Cooper Tire has an expected long-term growth rate of 4%. Over the past three months, shares of the company have gained 7.4%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
 
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
 
See the pot trades we're targeting>>

Published in