Winnebago Industries Reports Record Q1 Results; Shares Rise


This article was originally published on TipRanks.com.

Outdoor lifestyle product manufacturer Winnebago Industries, Inc. (WGO) has reported strong financial results for the fiscal first quarter ended November 27. The company’s shares closed 0.8% higher on Friday at $68.41.

Iowa-based Winnebago builds motorhomes, travel trailers, fifth-wheel products, pontoon boats, inboard/outboard and stern-drive powerboats, and commercial community outreach vehicles. Its facilities are spread across Iowa, Indiana, Minnesota, and Florida.

Earnings and Revenues

WGO’s earnings (adjusted) increased 97.2% year-over-year to $3.51 per share, beating the Street’s estimate of $2.25 per share.

Revenues grew 45.7% to a record $1.2 billion, exceeding analysts’ expectations of $1.01 billion. The rise was driven by strong demand for the company’s products.

Segment Revenues

Revenues for the Towable segment climbed 43.1% year-over-year to $651 million, the Motorhome segment’s revenues rose 30.7% to $421.5 million.

Revenues for the Marine segment, which was reported for the first time, totaled $79.3 million, up $67.4 million from the same period last year. The segment includes the revenues of Chris-Craft, acquired in June 2018, and Barletta, acquired on August 31, 2021.

Other Highlights

Adjusted EBITDA jumped 87.3% year-over-year to $167.2 million, and gross margins increased 250 basis points to a record 19.8%, primarily due to operating leverage, price increases, productivity initiatives, and a favorable segment mix.

CEO Comments

Commenting on the results, Winnebago’s President and CEO Michael Happe said, “As of October 2021, our RV (Recreational Vehicle) retail market share is 13.3%, reflecting an increase of 1.3 share points over the same period last year, on a trailing three-month basis per Statistical Surveys, Inc.”

Analyst Ratings

Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Winnebago Industries stock forecast of $93.80 implies 40.7% upside potential. Shares have gained 11.8% year-to-date.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 91% Bullish on the stock compared to a sector average of 70%.

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