Winnebago Industries Beats on the Top Line

Winnebago Industries (NYSE: WGO  ) reported earnings on June 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 1 (Q3), Winnebago Industries beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Winnebago Industries chalked up revenue of $218.2 million. The two analysts polled by S&P Capital IQ anticipated a top line of $197.8 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $155.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.27. The three earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.27 for Q3 were 108% higher than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.7%, 190 basis points better than the prior-year quarter. Operating margin was 4.7%, 240 basis points better than the prior-year quarter. Net margin was 3.5%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $202.6 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $781.7 million. The average EPS estimate is $1.00.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 273 rating the stock outperform, and 133 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Winnebago Industries a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Winnebago Industries is outperform, with an average price target of $24.33.

If you're looking for an edge in the transportation segment of the market, consider strong, smaller brands that sell their products to folks like you and me. We've got a couple to offer, plus a home-owner's trusted go-to company, in our new special report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice." Click here for instant access to this free report.

Seth Jayson owned shares of the following at the time of publication: Winnebago Industries. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Winnebago Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2514114, ~/Articles/ArticleHandler.aspx, 8/21/2014 7:07:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement