A month has passed by for the reason that final earnings report for Winnebago Industries (WGO). Shares have added about 12% in that time-frame, outperforming the S&P 500.
Will the latest constructive development proceed main as much as its subsequent earnings launch, or is Winnebago due for a pullback? Earlier than we dive into how traders and analysts have reacted as of late, let’s take a fast have a look at its most up-to-date earnings report with the intention to get a greater deal with on the essential catalysts.
Winnebago This autumn Earnings Lag Estimates, Fall Y/Y
Winnebago reported adjusted earnings of 28 cents per share for fourth-quarter fiscal 2024 (ended Aug. 31, 2024), lacking the Zacks Consensus Estimate of 91 cents and plunging 82.3% 12 months over 12 months. The leisure car (RV) maker reported revenues of $720.9 million for the quarter below overview, which fell wanting the Zacks Consensus Estimate of $726 million. The highest line additionally declined 6.5% 12 months over 12 months.
Segmental Efficiency
Towable RV: Revenues within the Towable RV section declined 7.2% 12 months over 12 months to $317 million amid decrease common promoting value per unit. The metric additionally missed our estimate of $346 million. Complete deliveries from the section got here in at 8,183 items, which elevated 6.1% 12 months over 12 months and beat our estimate of seven,819 items. Adjusted EBITDA declined 52% to $20.6 million owing to operational inefficiency and excessive guarantee prices. The determine additionally got here under our estimate of $33 million. The section’s backlog was $137.1 million (4,850 items), down 34%.
Motorhome RV: Revenues within the Motorhome RV section slid 3.1% 12 months over 12 months to $308 million on account of a decline in unit quantity. The highest line additionally missed our estimate of $311 million. Complete deliveries from the Motorhome RV section got here in at 1,545 items, falling 2.8% 12 months over 12 months and lacking our estimate of 1,580 items. The section recorded an adjusted EBITDA of $13 million, down 42% on account of deleveraging, excessive guarantee bills and operational challenges. The metric additionally missed our estimate of $20 million. The backlog was $234.4 million (897 items), down 66% from the prior-year quarter.
Marine: Revenues from the section totaled $80.5 million, down 16.6% 12 months over 12 months, primarily on account of decrease quantity. The metric additionally lagged our estimate of $87 million. The whole deliveries from the section got here in at 1,042 items, down 10.3% 12 months over 12 months, and fell wanting our estimate of 1,067 items. The section recorded an adjusted EBITDA of $5.5 million, down 45.7% 12 months over 12 months on account of deleveraging. The metric missed our estimate of $6.8 million. The backlog for the Marine section was $260 million (3,403 items), up 33.5%.
Financials & Outlook
Winnebago had money and money equivalents of $331 million as of Aug. 31, 2024. Lengthy-term debt (excluding present maturities) elevated to $637 million from $592.4 million recorded as of Aug. 26, 2023.
Through the quarter below overview, WGO purchased again shares price $10 million. The corporate paid a dividend of 34 cents per share on Sept. 25, 2024, to shareholders of report as of Sept. 11, 2024.
WGO expects its fiscal 2025 consolidated revenues within the band of $2.9-$3.2 billion. Adjusted EPS is estimated to be between $3.00 and $4.50.
How Have Estimates Been Transferring Since Then?
Prior to now month, traders have witnessed a downward development in contemporary estimates.
The consensus estimate has shifted -83.09% on account of these modifications.
VGM Scores
Presently, Winnebago has a pleasant Progress Rating of B, although it’s lagging so much on the Momentum Rating entrance with an F. Nonetheless, the inventory was allotted a grade of B on the worth facet, placing it within the high 40% for this funding technique.
General, the inventory has an combination VGM Rating of B. If you happen to aren’t centered on one technique, this rating is the one you ought to be excited by.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. It is no shock Winnebago has a Zacks Rank #5 (Robust Promote). We count on a under common return from the inventory within the subsequent few months.
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Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
