Winnebago Delivers Impressive Q3 Earnings, Revenues More Than Double

Manufacturer of recreational vehicles Winnebago Industries (WGO) reported fiscal third-quarter results that surpassed the Street’s expectations.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Driven by strong demand, net revenues came in at $960.7 million, which surpassed estimates of $839.4 million and compared favorably with $402.5 million in the year-ago period.

The Towable segment’s revenues rose substantially to $555.7 million from the year-ago period due to rising demand for its Grand Design RV and Winnebago branded products. Also, the Motorhome segment witnessed revenue growth of 89.2% to $385.3 million.

The company reported adjusted earnings of $2.16 per share, higher than the $1.76 per share estimated by analysts. Notably, it compared favorably with a loss of $0.26 recorded in the same quarter last year. (See Winnebago stock chart on TipRanks)

President and CEO of Winnebago Michael Happe said, “We are also continuing to invest in our business to ensure we are best positioned to meet the persistent, elevated demand we anticipate in quarters to come, driven by the secular and ongoing growth in outdoor lifestyle products and a positive change in consumer preferences for leisure and family activities.”

In May, C.L. King analyst Scott Stember maintained a Buy rating and price target of $99 on the stock. This implies 51% upside potential from current levels.

Stember believes that robust demand, rising share prices, and an improving margin profile remain tailwinds for the company.

Based on 5 Buys and 1 Hold, consensus among analysts is a Strong Buy. The average Winnebago analyst price target stands at $91.40, which implies upside potential of 40% from current levels.

Furthermore, Winnebago scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.