Winnebago (WGO) Up 8% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Winnebago Industries, Inc. WGO. Shares have added about 8 % in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted 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 Q4 Earnings & Revenues Top Estimates, Up Y/Y
Winnebago recorded earnings of 79 cents per share in the fourth quarter. The earnings per share after adjusting amortization and non-recurring costs came in at 94 cents, comfortably beating the Zacks Consensus Estimate of 72 cents. For the year-ago period, earnings were 49 cents per share. Net income on a reported basis soared 89.6% to $24.9 million or 70 cents per share.
Revenues in the fourth quarter surged 72.8% to $454.9 million from $263.3 million in the prior-year quarter. The figure also outpaced the Zacks Consensus Estimate of $443 million. This upside in the top line was driven by strong growth of the Towable business.
Operating profit in the reported quarter skyrocketed 130.2% to $43.5 million from $18.9 million in the year-ago quarter. Gross profit improved to $73.6 million, a rally of 16.2% from $31.9 million, recorded a year ago.
Fiscal 2017 Results
Winnebago reported a 38% rise in EPS of $2.32 for fiscal 2017, whereas the Zacks Consensus Estimate was $2.24.
Annual revenues increased 58.6% year over year to $1.55 billion, almost in line with the Zacks Consensus Estimate.
Segment Results
Revenues from Motorized segment declined 4.4% to $226.2 million from the year-ago period. Adjusted EBITDA dropped 31% to $12.2 million, primarily driven by pricing adjustments and transitioning production costs related to the company’s facility at Junction City, OR.
Revenues from the Towable segment went up to $228.7 million in comparison to $202.1 million in the fourth quarter of fiscal 2017. This upside was driven by adding revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA was pegged at $35.6 million, up $34.8 million from the year-ago quarter.
Financial Position
Winnebago had cash and cash equivalents of $35.9 million as of Aug 26, 2017 compared with $85.6 million as of Aug 27, 2016.
At the fiscal 2017-end, Winnebago’s cash flow from operations was $97.1 million, an 84% surge from the year-ago period.
Dividend
On Oct 18, 2017, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share, payable on Nov 29 to stockholders of record as of Nov 15.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
Winnebago Industries, Inc. Price and Consensus
Winnebago Industries, Inc. Price and Consensus | Winnebago Industries, Inc. Quote
VGM Scores
At this time, Winnebago's stock has a great Growth Score of A, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second 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.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Notably, the stock has a Zacks Rank #1 (Strong Buy). We are looking for an above average return from the stock in the next few months
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
