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Shares of Winnebago Industries, Inc. (WGO) gained 2.4% in Wednesday’s pre-market trading session after the company reported stronger-than-expected fiscal Q4 results, topping both earnings and revenue estimates, driven by robust consumer demand and continued market share gains.
Winnebago engages in the design, development, manufacture, and sale of motorized and towable recreation products primarily used in leisure travel and outdoor recreation activities. (See Winnebago stock charts on TipRanks)
Markedly, adjusted earnings of $2.57 per share grew 77.2% year-over-year and significantly beat analysts’ expectations of $2.01 per share. The company reported earnings of $1.45 per share in the prior-year period.
On top of this, revenues jumped 40.4% year-over-year to $1 billion and exceeded consensus estimates of $958.3 million. The increase in revenues reflected an upsurge in end-consumer demand, increased pricing across all segments, and a favorable product mix.
In addition, gross profit margins improved 150 bps year-over-year to 18.1% due to fixed cost leverage, higher pricing, lower discounts and allowances, as well as profitability initiatives.
Sharing his views on the coming year, Winnebago CEO Michael Happe commented, “Looking ahead, our confidence in our ability to profitably grow revenues and gain market share is reflected in the 50% increase to our quarterly cash dividend announced in late August, our share buybacks in our Fiscal 2021 fourth quarter, and the newly authorized share repurchase program of up to $200 million.”
He further added, “We look forward to continuing our momentum into Fiscal 2022 through a continued focus on quality, service and innovation as well as an expanded portfolio of high-quality outdoor lifestyle products that empower our customers to have extraordinary outdoor experiences as they travel, live, work and play.”
BMO Capital analyst Gerrick Johnson recently increased the price target on Winnebago Industries to $100.00 (38.4% upside potential) from $90.00 and reiterated a Buy rating.
Based on 3 Buys and 1 Hold, consensus among analysts is a Strong Buy. The average Winnebago analyst price target stands at $90, which implies upside potential of 24.6% from current levels.
Furthermore, Winnebago scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.