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Winnebago (WGO) Earnings and Revenues Beat Estimates in Q2

Zacks Equity Research

Winnebago Industries Inc. WGO reported adjusted earnings of 60 cents per share in the second quarter of fiscal 2019 (ended Feb 23, 2019), beating the Zacks Consensus Estimate of 56 cents. In the year-ago period, earnings were 69 cents a share. Net income decreased 2.2% year over year to $21.6 million.

Revenues in the reported quarter declined 7.6% to $432.7 million from $468.4 million in the prior-year quarter. However, the figure outpaced the Zacks Consensus Estimate of $426 million.

Operating income in the quarter under review decreased 18% to $28.9 million from $35.3 million in the year-ago quarter. Gross profit declined to $66.4 million from $67.7 million a year ago.
 

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

 

Winnebago Industries, Inc. Price, Consensus and EPS Surprise | Winnebago Industries, Inc. Quote

Segment Results

Revenues at the Motorhome segment were down 17.3% from a year ago to $164.7 million. Adjusted EBITDA declined 23.4% to $4.4 million.

Revenues at the Towable segment fell 5.9% to $250.7 million year over year. Adjusted EBITDA was $33.6 million, down 7.3% from the prior-year quarter.

Financial Position

Winnebago had cash and cash equivalents of $3.02 million as of Feb 23, 2019, compared with $2.34 million as of Aug 25, 2018.

For the first six months of fiscal 2019, Winnebago’s cash flow from operations was $51.9 million compared with $36.9 million in the same period of fiscal 2018.

In a year’s time, shares of Winnebago have outperformed the industry it belongs to. Its stock fell 21.1% in comparison with the industry’s decline of 53.3%.

Zacks Rank and Stocks to Consider

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

A few better-ranked stocks in the auto space are Ferrari N.V. RACE, Oshkosh Corporation OSK and Dana Incorporated DAN. While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and Dana carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 9.5%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have gained 21.4%.

Dana has an expected long-term growth rate of 4.4%. Over the past three months, shares of the company have risen 24.3%.

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