The 10-second takeaway
For the quarter ended Dec. 1 (Q1), Winnebago Industries crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Winnebago Industries recorded revenue of $193.6 million. The two analysts polled by S&P Capital IQ foresaw revenue of $155.3 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $131.8 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 $0.26. The three earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.26 for Q1 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.7%, 430 basis points better than the prior-year quarter. Operating margin was 5.2%, 470 basis points better than the prior-year quarter. Net margin was 3.8%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $149.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $657.6 million. The average EPS estimate is $0.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 130 members out of 261 rating the stock outperform, and 131 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Winnebago Industries a green thumbs-up, and 27 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 $16.00.
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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.