Winnebago Industries Reports Record Q1 Results; Shares Rise

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.

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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%.