U.S. Markets closed

Winnebago (WGO) Q3 Earnings & Revenues Top Estimates, Up Y/Y

Zacks Equity Research
1 / 2

Will Best Buy (BBY) Beat Estimates Again in Its Next Earnings Report?

Best Buy (BBY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

Winnebago Industries Inc. WGO registered earnings of $1.02 per share in the third quarter of fiscal 2018 (ended May 28, 2018), beating the Zacks Consensus Estimate of 91 cents. In the year-ago period, earnings were 61 cents per share. Net income soared 67.7% to $32.5 million.

Revenues in the reported quarter surged 18% to $562.3 million from $476.4 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $542.4 million. This upside in the top line was driven by continued growth in the Towable segment.

Operating income in the quarter under review rose 38.5% to $48.3 million from $34.9 million in the year-ago quarter. Gross profit improved to $85.5 million, increasing from $70.8 million a year ago.

Segment Results

Revenues from Motorized segment gained 3.1% to $249.2 million compared with the year-ago period. Adjusted EBITDA dropped 36% to $9.3 million.

Revenues from the Towable segment improved 33.4% to $313 in comparison with the third quarter of last fiscal. This upside was driven by strong organic growth across Grand Design RV and Winnebago-branded product lines. Adjusted EBITDA was pegged at $44 million, up 34.4% from the prior-year quarter.

Financial Position

Winnebago had cash and cash equivalents of $39 million as of May 26, 2018, compared with $24.4 million as of May 27, 2017.

For the first nine months of fiscal 2018, Winnebago’s cash flow from operations was $61 million compared with $67.4 million during the same period in fiscal 2017.

In a year’s time, shares of Winnebago have outperformed the industry it belongs to. Its stock has gained 20.5% in comparison with the industry’s increase of 8.7%.

Winnebago currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation OSK, Allison Transmission Holdings, Inc. ALSN and Ferrari N.V. RACE, each sporting a Zacks Rank # 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 7.3% over the past year.

Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 12.3%.

Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 65.4%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

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
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research