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

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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%.

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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
 
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