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Why Winnebago Industries, Rollins, and Boston Scientific Jumped Today

By Dan Caplinger - Oct 23, 2019 at 4:30PM

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Earnings continued to separate winners from losers even as indexes moved only modestly higher.

At first glance, it might seem like Wednesday was relatively quiet on Wall Street, with major benchmarks finishing quite close to where they started the session. Yet today was actually a busy day for investors, as earnings season went through its quarterly crescendo. Several high-profile companies gave their latest financial results, and although some of them suffered setbacks that pointed to potential stress ahead, others managed to produce surprisingly good performance. Winnebago Industries (WGO 1.31%), Rollins (ROL -0.37%), and Boston Scientific (BSX -0.70%) were among the top performers. Here's why they did so well.

Winnebago hits the gas

Shares of Winnebago Industries jumped 15% after the recreational vehicle specialist reported solid results for its fiscal fourth quarter. Revenue eased lower by 1% from year-ago levels, but net income climbed 7%. More broadly, full-year earnings hit a new record for Winnebago, and CEO Michael Happe pointed to the success of the company's two-part strategy of strengthening its core RV business while also branching out into the marine industry. Even though total motor home deliveries weakened by almost 20% from the previous year's fiscal fourth quarter, Winnebago shareholders seem convinced that the RV giant remains positioned well to take advantage of the continuing popularity of its vehicles.

Winnebago RV parked at a campsite with two adults, three children, and a dog at a picnic table.

Image source: Winnebago.

Rollins profits from pests

Rollins saw its stock climb 7% in the wake of its third-quarter financial results. The pest control specialist said that revenue climbed 14% compared to the year-earlier period, with organic sales growth of 6.4% complementing the company's strategic acquisition plan. Adjusted net income rose 6% year over year, and CEO Gary Rollins stated his confidence in what he's seeing from the company. Some question how far Rollins can go by acquiring other businesses in the highly fragmented pest control industry, but so far, investors seem satisfied with the positive results they've seen.

Boston Scientific looks healthy

Finally, shares of Boston Scientific picked up 5%. The medical device maker reported that its revenue climbed 13% during the third quarter of 2019 compared to the year-ago period, lifting adjusted earnings per share by 11% over the same time frame. Boston Scientific saw double-digit percentage gains in revenue in both the medical surgery and cardiovascular segments, and even sluggish growth in the rhythm and neuro business wasn't able to slow down top-line growth significantly. Even as many investors worry about how healthcare stocks more broadly will weather expected regulatory changes from Washington, device makers like Boston Scientific should continue to see strong demand for their products as the global population continues to age.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Rollins. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Winnebago Industries, Inc. Stock Quote
Winnebago Industries, Inc.
$61.03 (1.31%) $0.79
Boston Scientific Corporation Stock Quote
Boston Scientific Corporation
$40.94 (-0.70%) $0.29
Rollins, Inc. Stock Quote
Rollins, Inc.
$37.60 (-0.37%) $0.14

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