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Factors Deciding the Fate of Winnebago's (WGO) Q1 Earnings

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Winnebago Industries WGO is scheduled to release first-quarter fiscal 2022 results on Dec 17, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.29 and $1 billion, respectively.

One of the leading recreational vehicle (RV) makers, Winnebago posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues from Towable & Motorhome segments.

Winnebago surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 42.3%. This is depicted in the graph below:

Winnebago Industries, Inc. Price and EPS Surprise

Winnebago Industries, Inc. Price and EPS Surprise
Winnebago Industries, Inc. Price and EPS Surprise

Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for Winnebago’s fiscal first-quarter earnings per share has been revised upward by 43 cents to $2.29 in the past 60 days. This indicates an increase from the year-ago quarter’s $1.69 per share. Also, the Zacks Consensus Estimate for revenues suggests a year-over-year rise of 26.6%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Winnebago for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case as elaborated below.

Earnings ESP: Winnebago has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Winnebago currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Things to Note

Despite the fact that vaccinations are available and most people have got their shots, demand for RVs continues to remain strong because of safe travel enthusiasts and millennials’ zeal for off-the-grid living. This is likely to have aided Winnebago’s revenues in the quarter to be reported.

Strong consumer demand for Grand Design, Newmar, Barletta and Winnebago’s product lines is likely to have driven the top line. The Zacks Consensus Estimate for the Towable segment revenues is pegged at $542 million, indicating year-over-year growth of 19%. The consensus estimate for the Motorhome segment revenues is $410 million, suggesting year-over-year growth of 27.3%.

On a somewhat discouraging note, supply constraints and the shortage of various RV components in Europe and North America might have posed some challenges for the company in the quarter under review. A tight labor market and high commodity and SG&A costs are also likely to have dented its fiscal first-quarter 2022 margins.

3 Solid Picks From the Auto Space

Other top-ranked stocks in the auto space include Goodyear Tire GT, Tesla TSLA and Harley-Davidson HOG, each flaunting a Zacks Rank of 1.

Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its earnings for the current year has been revised upward by 80 cents over the past 60 days.

Goodyear beat the Zacks Consensus Estimate for earnings in the last four quarters. GT has a trailing four-quarter earnings surprise of 228.5%, on average. Its shares have rallied 91.7% over the past year.

Tesla has an expected earnings growth rate of 167% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 62 cents over the past 60 days.

Tesla beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. TSLA has a trailing four-quarter earnings surprise of 25.4%, on average. Its shares have rallied 53.9% over the past year.

Harley-Davidson has an expected earnings growth rate of 34.92% for the current quarter. The Zacks Consensus Estimate for its earnings for the current year has been revised upward by 32 cents over the past 60 days.

Harley-Davidson beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. HOG has a trailing four-quarter negative earnings surprise of 138.45%, on average. Its shares have moved up 3.2% over the past year.


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