Yahoo Finance Winnebago (WGO) Q3 Earnings Miss Expectations, Decline Y/Y
Winnebago Industries WGO reported adjusted earnings of $1.13 per share for third-quarter fiscal 2024 (ended May 25, 2024), missing the Zacks Consensus Estimate of $1.30 and falling 46.9% year over year. The recreational vehicle (RV) maker reported revenues of $786 million for the quarter under review, missing the Zacks Consensus Estimate of $800 million. The top line also fell 12.7% year over year.
Segmental Performance
Towable RV: Revenues in the Towable RV segment rose 0.6% year over year to $386.3 million, primarily due to a rise in unit volume. The metric, however, missed our estimate of $388.9 million. Total deliveries from the segment came in at 9,263 units, increasing 6.3% year over year and beating our estimate of 8,667 units. Adjusted EBITDA declined 22% to $41.9 million owing to operational efficiency challenges. The figure, however, came ahead of our estimate of $31.8 million. The segment’s backlog was $153.1 million (4,734 units), decreasing 35.1%.
Motorhome RV: Revenues in the Motorhome RV segment slid 20.1% year over year to $299 million due to a decline in unit volume and high discounts and allowances. The top line also missed our estimate of $357.9 million. Total deliveries from the Motorhome RV segment came in at 1,680 units, falling 21.2% year over year and missing our estimate of 1,927 units. The segment recorded an adjusted EBITDA of $13.4 million, down 50.2% due to deleveraging and operational challenges. The metric also missed our estimate of $21.3 million. The backlog was $354.9 million (1,596 units), down 55.7% from the prior-year quarter.
Marine: Revenues in the segment were $87.9 million, decreasing 31.8% year over year, primarily due to lower volume. The metric also lagged our estimate of $89 million. The total deliveries from the segment came in at 1,127 units, down 28.9% year over year but came ahead of our estimate of 1,082 units. The segment recorded an adjusted EBITDA of $8.5 million, down 50.9% year over year due to deleveraging. The metric, however, beat our estimate of $7.5 million. The backlog for the Marine segment was $62 million (642 units), down 57.6%.
Financials
Winnebago had cash and cash equivalents of $318.1 million as of May 25, 2024. Long-term debt (excluding current maturities) increased to $636.4 million from $592.4 million recorded as of Aug 26, 2023.
The company approved a dividend of 31 cents per share payable on Jun 26, 2024, to shareholders of record as of Jun 12, 2024.
Zacks Rank & Key Picks
WGO currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK, and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved by 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved by 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 and 2025 have moved up 2 cents and 17 cents, respectively, in the past 30 days.
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