Winnebago (WGO) Up 5.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Winnebago Industries (WGO). Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? 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 Keeps Its Earnings Beat Streak Alive in Q2
Winnebago reported adjusted earnings of $1.88 per share for second-quarter fiscal 2023 (ended Feb 25, 2023), which topped the Zacks Consensus Estimate of $1.32 on higher-than-anticipated EBITDA across all segments. The bottom line, however, plunged 40% year over year. The recreational vehicle (RV) maker reported revenues of $866.7 million in the quarter under review, crossing the Zacks Consensus Estimate of $781 million. Nonetheless, the top line fell 25.5% year over year.
Segmental Performance
Revenues in the Towable segment in the reported quarter fell 47% year over year to $342.5 million, primarily led by a decline in unit volume. The top line also missed the Zacks Consensus Estimate of $352 million. Total deliveries from the segment came in at 7,436 units, decreasing 51.4% year over year but beating the consensus metric of 6,711 units. Quarterly adjusted EBITDA declined 60.9% to $39.3 million, reflecting higher material and component costs and deleverage. The figure came ahead of the consensus mark of $38.42 million. The segment’s backlog was $278.2 million (5,841 units), decreasing 85.1%.
In the reported quarter, revenues in the Motorhome segment slid 3.3% year over year to $403.8 million on lower deliveries. The top line, however, topped the consensus mark of $394 million. The total deliveries from the segment came at 2,165 units, down 23.5% year over year and missing the consensus metric of 2,219 units. The segment recorded an EBITDA of $42.5 million, down 7.8% but surpassing the consensus mark of $32.34 million. The backlog was $872.7 million (5,341 units), down 60.6% from the prior year.
In the reported quarter, revenues in the Marine segment were $112.9 million, jumping 16.1% year over year, largely driven by the Barletta buyout. The metric missed the consensus mark of $127 million. The total deliveries from the segment came at 1,266 units, down 4.2% year over year and falling short of the consensus metric of 1,664 units. The segment recorded an EBITDA of $14.4 million, up 11.4% year over year and exceeding the consensus metric of $9.53 million. The backlog for the Marine segment was $238.5 million (2,511 units), down 14.1%.
Financials
Winnebago had cash and cash equivalents of $229.3 million as of Feb 25, 2023. The long-term debt (excluding current maturities) increased to $591 million from $545.9 million, recorded on Aug 27, 2022. The company approved a dividend of 27 cents a share, to be paid on Apr 26, 2023, to shareholders of record at the close of business on Apr 12, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.42% due to these changes.
VGM Scores
At this time, Winnebago has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Winnebago 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 Industries, Inc. (WGO) : Free Stock Analysis Report
