This morning, Winnebago Industries
As we all know, the Winnebago name is synonymous with "RV." You know you've been doing something right for a while if your brand name is used to identify the overall market. Prime examples of this recognition are bestowed on the likes of Google
Overall, I don't think Winnebago suffered a bad quarter. Sales were up a decent 5.2% quarter over quarter. Earnings were a bit off because of the increased sale of lower-margin RVs in the quarter. The increased labor and material costs were partly attributable to the additional costs incurred to stage its annual Dealer Days event in Las Vegas, which normally takes place during the fourth quarter. This rescheduling appears to have been a smart move by management, as Winnebago got overall positive reactions from consumers over its upcoming 2008 models. The reactions were so good, in fact, that backlog orders are up 137% this quarter compared to the year-ago quarter. Management has also continued to repurchase shares, and share count was actually down from the previous quarter.
Companies that provide leisure products and services, like Winnebago, Thor Industries
It pays to keep an eye on good businesses that Mr. Market can offer up to you for less just because they made a penny or so less than the "consensus." As long as the long-term economic business strengths are still intact, it's folly to think that any good business is suddenly worth 10% less because of a penny or two.
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