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Winnebago (WGO) to Report Q3 Earnings: What's in Store?

Zacks Equity Research

Winnebago Industries, Inc. (WGO) is set to report third-quarter fiscal 2019 results on Jun 19, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 7.1%.

In fact, it delivered positive earnings surprises in all of the trailing four quarters, the average earnings surprise being 12.8%. Further, the long-term expected earnings growth rate for the company (over three to five years) is currently pegged at 22%.

In the past three months, shares of Winnebago have outperformed the industry it belongs to. Over this time frame, shares of the company have gained 18.5% while the industry grew 5.6%.

Let’s see how things are shaping up for this announcement.

Winnebago Industries, Inc. Price and EPS Surprise

 

Winnebago Industries, Inc. Price and EPS Surprise

Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote

Factors to Consider

Winnebago expects to expand the footprint and diversify the portfolio in the outdoor lifestyle market through acquisitions. The Chris-Craft acquisition provides the company with strong base for additional revenue generation. Its entry in the towable market has been successful, and high growth rates have been witnessed in revenues and earnings. This is likely to have a positive impact on the soon-to-be-released results.

However, the recreational vehicle industry is facing challenges as dealers are reducing overall inventory levels. This will likely impact the company’s third-quarter 2019 results adversely.

Earnings Whisper

Our proven model does not conclusively predict that Winnebago is likely to beat on earnings this quarter. This is because, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Winnebago has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Note that we caution against Rank #4 and 5 (Sell-rated) stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Peer Releases

On Apr 30, Standard Motor Products Inc. SMP announced first-quarter fiscal 2019 earnings. In the reported quarter, the company posted earnings per share of 57 cents, missing the Zacks Consensus Estimate of 63 cents. In the reported quarter, its total revenues were $283.8 million, which surpassed the Zacks Consensus Estimate of $280 million. The company currently carries a Zacks Rank of 3.

On Apr 30, Cummins Inc. CMI announced first-quarter 2019 earnings. The company posted earnings per share of $4.20 and revenues of $6 billion. Its quarterly numbers beat the respective Zacks Consensus Estimate. The company currently carries a Zacks Rank # 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

On May 9, Westport Fuel Systems Inc. WPRT announced first-quarter 2019 results. In the quarter, the company’s net loss from continuing operations was 2 cents per share, narrower than the Zacks Consensus Estimate of loss of 5 cents. Also, its revenues surpassed estimates. The company currently carries a Zacks Rank # 2.

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