Winnebago (WGO) Q4 Earnings Top Estimate, Revenues Miss
Winnebago WGO delivered adjusted earnings of $1.59 per share for fourth-quarter fiscal 2023 (ended Aug 26, 2023), which topped the Zacks Consensus Estimate of $1.32. However, the bottom line fell by 47.4% year over year. The recreational vehicle (“RV”) maker reported revenues of $771 million in the quarter under review, missing the Zacks Consensus Estimate of $775 million. The top line also fell by 34.6% 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 RV segment fell 30.9% year-over-year to $341.4 million, primarily led by a decline in unit volume. However, the metric surpassed our estimate of $321.5 million due to higher-than-expected total deliveries. Total deliveries from the segment came in at 7,711 units, decreasing 26.3% year over year but beating our estimate of 6,822 units. Adjusted EBITDA declined 19.7% to $42.7 million, reflecting a higher discount and allowance and volume deleverage. The figure came ahead of our estimate of $27.1 million. The segment’s backlog was $208.1 million (5,111 units), decreasing 63.9%.
In the reported quarter, revenues in the Motorhome RV segment slid 42.8% year-over-year to $317.7 million due to a decline in unit volume. The top line, however, surpassed our estimate of $317.5 million. The total deliveries from the segment came at 1,590 units, down 51.7% year over year and missing our estimate of 1,989 units. The segment recorded an adjusted EBITDA of $22.4 million, down 71.1% and lagged our estimate of $28.2 million. The backlog was $688.6 million (3,828 units), down 59.2% from the prior year.
Revenues in the Marine segment were $96.4 million, decreasing 21% year over year, primarily driven by lower unit sales. The metric also lagged our estimate of $125.4 million due to lower-than-expected deliveries. The total deliveries from the segment came at 1,162 units, down 26.5% year over year and lagged our estimate of 1,533 units. The segment recorded an adjusted EBITDA of $10.3 million, down 41.4% year over year but exceeding our estimate of $10.1 million. The backlog for the Marine segment was $194.7 million (2,545 units), down 38.1%.
Financials
Winnebago had cash and cash equivalents of $309.9 million as of Aug 26, 2023. Long-term debt (excluding current maturities) increased to $592.4 million from $545.9 million, recorded on Aug 27, 2022. The company hiked its dividend by 4 cents per share to 31 cents, which will be paid on Sep 27, 2023, to shareholders of record at the close of business on Sep 13, 2023. The company bought back $30 million in shares during the quarter under review.
Zacks Rank & Key Picks
WGO currently carries a Zacks Rank #5 (Strong Sell).
Some top-ranked players in the auto space are Toyota Motor TM, Adient plc ADNT and Allison Transmission Holdings, Inc. ALSN. While TM sports a Zacks Rank #1 (Strong Buy), ADNT and ALSN each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 26.2%, respectively.
The Zacks Consensus Estimate for ADNT’s 2023 sales and earnings indicates year-over-year rises of 9.3% and 1,845.5%, respectively. In the past seven days, the EPS estimates for 2023 and 2024 have increased by 6 cents and a penny, respectively.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year improvements of 9.4% and 26.6%, respectively. The EPS estimates for 2023 and 2024 have moved up by a penny and 13 cents, respectively, in the past seven days.
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