Winnebago (WGO) Q4 Earnings Beat Mark, Backlog Jumps Y/Y
Winnebago Industries, Inc. WGO reported fourth-quarter fiscal 2021 (ended Aug 28, 2021) adjusted earnings per share of $2.57, surpassing the Zacks Consensus Estimate of $1.98 and surging 77.2% year over year. This outperformance can be attributed to higher-than-anticipated revenues across both Towable and Motorhome segments.
This recreational vehicle maker reported revenues of $1,036 million for the quarter under review, outpacing the Zacks Consensus Estimate of $943 million. Further, the top line grew 40.4% year over year.
Winnebago Industries, Inc. Price, Consensus and EPS Surprise
Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote
Segmental Performance
Revenues in the Towable segment for the reported quarter soared 35.3% year over year to $560 million, primarily on solid consumer demand for Grand Design and Winnebago branded products. The reported figure also topped the consensus mark of $543 million. Quarterly adjusted EBITDA rose 36% year on year to $83.4 million, courtesy of favorable pricing and operational discipline. The metric also beat the consensus mark of $73 million. Backlog in the segment amounted to $1,704.4 million (46,590 units), up a whopping 127.9% year over year.
For the reported quarter, revenues in the Motorhome segment improved 48.7% year over year to $448.9 million, thanks to strong demand for Newmar and Winnebago branded products. The revenue figure also surpassed the Zacks Consensus Estimate of $405 million. The segment recorded an EBITDA of $50.4 million, skyrocketing 159.1% year over year. Also, the segment’s backlog was $2,303.5 million (18,254 units), which jumped 119.1% year on year, highlighting surging consumer demand during the reported quarter.
Financials
Winnebago — whose peers include Thor Industries THO, REV Group, Inc. REVG, and LCI Industries LCII — had cash and cash equivalents of $434.6 million as of Aug 28, 2021, up from $292.6 million on Aug 29, 2020. Long-term debt (excluding current maturities) totaled $528.6 million, slightly up from $512.6 million recorded on Aug 29, 2020.
During the quarter under review, Winnebago repurchased shares of $35.4 million. In fiscal 2021, the Zacks Rank #2 (Buy) firm returned $61.6 million to shareholders via dividends ($16.2 million) and buybacks ($45.4 million). Last week, Winnebago boosted shareholder value with the authorization of an additional $200 million of stock buyback. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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