Winnebago Industries WGO is scheduled to release second-quarter fiscal 2023 results on Mar 22, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.38 and $780.7 million, respectively.
The Zacks Consensus Estimate for Winnebago’s fiscal second-quarter earnings per share has been revised downward by 11 cents in the past 30 days. The bottom-line projection implies a year-over-year decline of 56%. The Zacks Consensus Estimate for revenues also suggests a year-over-year contraction of 33%.
One of the leading recreational vehicle (RV) manufacturers in the world, Winnebago, posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues and EBITDA from the Marine segment. The bottom line, however, plunged 41% year over year.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 13.48%.
Winnebago Industries, Inc. Price and EPS Surprise
Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote
Investors are expecting WGO to pull off an earnings beat this time as well. Discouragingly, our model doesn’t predict the same.
Things to Note
The RV market is highly consumer cyclic and dependent on business cycles and economic conditions. Fears of economic slowdown, triggered by high inflation and the Fed’s hawkish stance are likely to have weighed on Winnebago in the quarter-to-be-reported. The number of RV units sold by Winnebago in the second quarter of fiscal 2023 is likely to have declined from the year-ago period.In addition to the declining unit sales, commodity and labor cost inflation and supply-chain disruptions have been increasing the cost of manufacturing RVs.
Let’s look at the key second-quarter fiscal 2023 projections for the company’s segments.
The Zacks Consensus Estimate for fiscal second-quarter revenues from the Towable segment is pegged at $352 million, indicating a decline from the $647 million recorded in the year-ago quarter. The consensus mark for units sold in this segment is 6,711, implying a sharp decline from the 15,290 reported in the prior-year quarter. The consensus estimate for adjusted EBITDA is pegged at $38.42 million, suggesting a decline from the $101 million reported in the corresponding quarter of fiscal 2022.
The consensus mark for revenues from the Motorhome segment is $394 million, indicating an increase from $418 million recorded in the previous-year quarter. The consensus estimate for units sold is 2,219, suggesting a decline from the 2,830 reported in the year-ago period. The adjusted EBITDA estimate of the segment is $32.34 million, implying an uptick from $46.1 million recorded in second-quarter fiscal 2022.
The consensus mark for revenues from the Marine segment is $127 million, implying a rise from $97.3 million recorded in the year-ago quarter. The estimate for units sold is 1,664, suggesting an increase from 1,322 reported in the year-ago period. However, the adjusted EBITDA estimate for the segment is $9.53 million, implying a contraction from $12.9 million generated in the fiscal second quarter of 2022.
What Does Our Model Say
Our proven model doesn’t conclusively predict an earnings beat for Winnebago in the to-be-reported quarter, as it does not have the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
Earnings ESP: WGO has an Earnings ESP of -13.64%. This is because the Most Accurate Estimate is pegged 19 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Winnebago carries a Zacks Rank of 4 (Sell), currently.
You can see the complete list of today’s Zacks #1 Rank 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%. Diluted earnings per share are expected to be $5.50-$6.50, down from the previously mentioned $7.40-$8.70.
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