Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Shares of Winnebago Industries, Inc. Needed Repairs

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Winnebago Industries, (NYSE: WGO  ) were getting driven into a ditch today, falling 14% after posting an underwhelming earnings report.

So what: The recreation-vehicle maker saw profits jump 51% in the quarter, but lower-than-expected revenue weighed on the stock. Sales improved 15% to $222.7 million, up 15%, but that was well short of analyst estimates at $233.1 million. The company noted solid increases in motorhome sales on rising demand, and CEO Randy Potts said the results were "strong." He added that the company was continuing to come out with promising new vehicles such as the Winnebago Trend, which was named "top RV debut" of the year. Earnings per share came in $0.40, beating estimates of $0.37.

Now what: The sharp sell-off is surprising given the fact that the company managed to top Wall Street's bottom-line estimates, but Winnebago seems to have simply been a victim of the analysts' high expectations as the experts were eyeing sales growth of 20%. I'd say the sell-off presents an excellent buying opportunity. With a generation of baby boomers cycling into retirement, stocks at all-time highs, and the economy recovering at warp speed, a perfect storm could be brewing for Winnebago sales to boom. Its brand strength and name recognition only makes it more compelling. I plan to give a thumbs-up in CAPS and may buy some shares myself soon.

What else is gonna be a banging growth stock?
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen 6 picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (2)

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.

Compare Brokers

Fool Disclosure

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: 2772121, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:41:59 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:02 PM
WGO $22.75 Down -0.03 -0.13%
Winnebago Industri… CAPS Rating: ***