The 10-second takeaway
For the quarter ended Feb. 25 (Q2), Winnebago Industries beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Winnebago Industries logged revenue of $131.6 million. The four analysts polled by S&P Capital IQ anticipated sales of $114.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $106.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.03. The three earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were -$0.03 for Q2 against $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.2%, 540 basis points worse than the prior-year quarter. Operating margin was -0.9%, 470 basis points worse than the prior-year quarter. Net margin was -0.7%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $166.4 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $549.4 million. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 129 members out of 261 rating the stock outperform, and 132 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Winnebago Industries a green thumbs-up, and 36 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 $12.33.
Over the decades, small-cap stocks like Winnebago Industries have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Winnebago Industries to My Watchlist.
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.