The 10-second takeaway
For the quarter ended June 1 (Q3), Winnebago Industries beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Winnebago Industries chalked up revenue of $218.2 million. The two analysts polled by S&P Capital IQ anticipated a top line of $197.8 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $155.7 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 $0.27. The three earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.27 for Q3 were 108% higher than the prior-year quarter's $0.13 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 9.7%, 190 basis points better than the prior-year quarter. Operating margin was 4.7%, 240 basis points better than the prior-year quarter. Net margin was 3.5%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $202.6 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $781.7 million. The average EPS estimate is $1.00.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 273 rating the stock outperform, and 133 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Winnebago Industries a green thumbs-up, and 26 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 $24.33.
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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.