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Winnebago (WGO) Keeps Its Earnings Beat Streak Alive in Q2

Winnebago WGO reported adjusted earnings of $1.88 per share for second-quarter fiscal 2023 (ended Feb 25, 2023), which topped the Zacks Consensus Estimate of $1.32 on higher-than-anticipated EBITDA across all segments. The bottom line, however, plunged 40% year over year. The recreational vehicle (RV) maker reported revenues of $866.7 million in the quarter under review, crossing the Zacks Consensus Estimate of $781 million. Nonetheless, the top line fell 25.5% year over year.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. Price, Consensus and EPS Surprise
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 in the reported quarter fell 47% year over year to $342.5 million, primarily led by a decline in unit volume. The top line also missed the Zacks Consensus Estimate of $352 million. Total deliveries from the segment came in at 7,436 units, decreasing 51.4% year over year but beating the consensus metric of 6,711 units. Quarterly adjusted EBITDA declined 60.9% to $39.3 million, reflecting higher material and component costs and deleverage. The figure came ahead of the consensus mark of $38.42 million. The segment’s backlog was $278.2 million (5,841 units), decreasing 85.1%.

In the reported quarter, revenues in the Motorhome segment slid 3.3% year over year to $403.8 million on lower deliveries. The top line, however, topped the consensus mark of $394 million. The total deliveries from the segment came at 2,165 units, down 23.5% year over year and missing the consensus metric of 2,219 units. The segment recorded an EBITDA of $42.5 million, down 7.8% but surpassing the consensus mark of $32.34 million. The backlog was $872.7 million (5,341 units), down 60.6% from the prior year.

In the reported quarter, revenues in the Marine segment were $112.9 million, jumping 16.1% year over year, largely driven by the Barletta buyout. The metric missed the consensus mark of $127 million. The total deliveries from the segment came at 1,266 units, down 4.2% year over year and falling short of the consensus metric of 1,664 units. The segment recorded an EBITDA of $14.4 million, up 11.4% year over year and exceeding the consensus metric of $9.53 million. The backlog for the Marine segment was $238.5 million (2,511 units), down 14.1%.

Financials

Winnebago had cash and cash equivalents of $229.3 million as of Feb 25, 2023. The long-term debt (excluding current maturities) increased to $591 million from $545.9 million, recorded on Aug 27, 2022. The company approved a dividend of 27 cents a share, to be paid on Apr 26, 2023, to shareholders of record at the close of business on Apr 12, 2023.

WGO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

What Did Thor’s Latest Quarterly Report Unveil?

Close peer Thor Industries THO released second-quarter fiscal 2023 results on Mar 7. It posted adjusted earnings of 50 cents per share, which lagged the Zacks Consensus Estimate of $1.10. The bottom line declined massively by 89.5% from the year-ago profit of $4.79 per share. The company registered revenues of $2,347 million for the quarter under review, missing the Zacks Consensus Estimate of $2,531 million. The top line also declined 39.4% year over year.

Thor also revised its guidance for fiscal 2023. It projects full-year consolidated net sales of $10.5-$11.5 billion, down from the previous guided range of $11.5-$12.5 billion. The consolidated gross profit margin is expected to be 13.4-14.2%, down from the prior stated 14.2-14.9%. Earnings per share are expected to be $5.50-$6.50, down from the previously mentioned $7.40-$8.70.

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