This morning, Winnebago Industries (NYSE:WGO) reported 2007 third-quarter earnings of $0.35 a share, compared to the $0.40 earned in the third quarter of 2006. Also, Winnebago's earnings failed to meet the analyst consensus. As you might have guessed, the company's stock is being punished, having dropped almost 7% before the market opened.

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 (NASDAQ:GOOG) and USG (NYSE:USG). How many times have you heard someone use the word "Google" or "Googling" as a verb? And what about "sheetrock" to describe just about every brand of wallboard?

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 (NYSE:THO), and Fleetwood Enterprises (NYSE:FLE), will experience a softness in demand from time to time. When times are tough, a vacation might not be the first thing on your mind. High gas prices also affect the demand for a cross-country trip in a big Winnebago. However, Winnebago is beginning to sell more and more diesel models. Also, a Winnebago might actually be a very economical way to take a trip, since you can take along the whole family for one price as opposed to buying separate airplane tickets. Winnebagos have wide consumer appeal -- retirees looking for adventure, sports fans wanting to travel, and vacationers looking for a new experience all find them appealing. That should keep this company around for a long, long time.

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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Fool contributor Sham Gad is currently setting up Gad Investment Funds, a Graham/Buffett-focused investment partnership. He owns shares of USG. Check out the Fool's disclosure policy.