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Robust Sales to Aid Winnebago (WGO) Q2 Earnings Amid Cost Woes
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Winnebago Industries (WGO - Free Report) is scheduled to release second-quarter fiscal 2022 results on Mar 23, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $3.06 and $1.1 billion, respectively.
The Zacks Consensus Estimate for Winnebago’s fiscal second-quarter earnings per share has been revised upward by 3 cents in the past 30 days. The bottom-line projection calls for a year-over-year uptick of 44.3%. The Zacks Consensus Estimate for revenues also suggests a year-over-year rise of 31.3%.
One of the leading recreational vehicle (RVs) manufacturers in the world, Winnebago posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues across North American Towable and Motorized RVs segments.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 40%. This is depicted in the graph below:
Investors are expecting WGO to pull off an earnings beat this time as well. Discouragingly, our model doesn’t conclusively predict the same.
Factors at Play
Despite the relaxation of travel restrictions and people getting fully vaccinated, the demand for campers, motorhomes and other recreational vehicles didn’t subside. Demand for RVs continued its momentum because of safe travel enthusiasts and millennials’ zeal for off-the-grid living, resulting in massive order backlogs for companies like Winnebago. Sustained inclination of people to opt for RVs to go camping around the country or enjoy a vacation is anticipated to have boosted the demand for Winnebago’s products during the to-be-reported quarter.
The Zacks Consensus Estimate for the Towable segment revenues is pegged at $590 million, indicating a year-over-year jump of 34.4%. Strong consumer demand for Grand Design and Winnebago’s product lines is likely to have driven revenues. The consensus estimate for the Motorhome segment revenues is pinned at $438 million, suggesting year-over-year growth of 14.4%.
The acquisition of Barletta fortified Winnebago’s marine market foothold and augmented its revenue stream beyond RVs. The buyout is likely to have boosted the company’s top line during the to-be-reported quarter.
On the flip side, Winnebago is facing temporary hiccups owing to supply constraints and the shortage of various RV components. Rising input costs and a tight labor market are also likely to have affected the firm’s fiscal-second margins. Also, rising selling, general and distribution expenses are expected to have dented Winnebago’s cash flows and overall margins during the fiscal second quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Winnebago for the to-be-reported quarter, as it does not have the right combination of two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case as elaborated below.
Earnings ESP: Winnebago has an Earnings ESP of -2.88%. This is because the Most Accurate Estimate is pegged at $2.97, 9 cents below the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Winnebago’s closest peer Thor Industries (THO - Free Report) unveiled second-quarter fiscal 2022 results on Mar 9. The RV maker posted adjusted earnings of $4.79 per share, which beat the Zacks Consensus Estimate of $3.40. The bottom line jumped 101.3% from the year-ago profit of $2.38 per share. The company registered revenues of $3,875 million for the quarter under review, topping the Zacks Consensus Estimate of $3,553 million. The top line also recorded a 42.1% year-over-year increase.
As of Jan 31, 2022, Thor had cash and cash equivalents of $330.3 million and long-term debt of $2,167.7 million. Consolidated backlog as of quarter-end was $17.73 billion, reflecting a year-over-year rise of 60%. Thor currently carries a Zacks Rank #3.
REV Group (REVG - Free Report) , a manufacturer of industry-leading specialty vehicles, posted fiscal first-quarter 2022 results on Mar 9. The company came out with quarterly earnings of 13 cents per share, beating the Zacks Consensus Estimate of 12 cents on the back of higher-than-expected sales from the Commercial and Recreation segments. This compares unfavorably with earnings of 14 cents per share a year ago. Revenues of $537 million for the quarter ended January 2022 surpassed the Zacks Consensus Estimate by 2.14%. Revenues of $554 million were recorded a year ago.
REVG reiterated its full-year fiscal 2022 guidance of net sales in the band of $2.3-$2.55 billion. Net income is envisioned in the range of $45-$73 million. Free cash flow is expected between $58 million and $80 million. REV Group currently carries a Zacks Rank #5 (Strong Sell).
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Robust Sales to Aid Winnebago (WGO) Q2 Earnings Amid Cost Woes
Winnebago Industries (WGO - Free Report) is scheduled to release second-quarter fiscal 2022 results on Mar 23, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $3.06 and $1.1 billion, respectively.
The Zacks Consensus Estimate for Winnebago’s fiscal second-quarter earnings per share has been revised upward by 3 cents in the past 30 days. The bottom-line projection calls for a year-over-year uptick of 44.3%. The Zacks Consensus Estimate for revenues also suggests a year-over-year rise of 31.3%.
One of the leading recreational vehicle (RVs) manufacturers in the world, Winnebago posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues across North American Towable and Motorized RVs segments.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 40%. This is depicted in the graph below:
Winnebago Industries, Inc. Price and EPS Surprise
Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote
Investors are expecting WGO to pull off an earnings beat this time as well. Discouragingly, our model doesn’t conclusively predict the same.
Factors at Play
Despite the relaxation of travel restrictions and people getting fully vaccinated, the demand for campers, motorhomes and other recreational vehicles didn’t subside. Demand for RVs continued its momentum because of safe travel enthusiasts and millennials’ zeal for off-the-grid living, resulting in massive order backlogs for companies like Winnebago. Sustained inclination of people to opt for RVs to go camping around the country or enjoy a vacation is anticipated to have boosted the demand for Winnebago’s products during the to-be-reported quarter.
The Zacks Consensus Estimate for the Towable segment revenues is pegged at $590 million, indicating a year-over-year jump of 34.4%. Strong consumer demand for Grand Design and Winnebago’s product lines is likely to have driven revenues. The consensus estimate for the Motorhome segment revenues is pinned at $438 million, suggesting year-over-year growth of 14.4%.
The acquisition of Barletta fortified Winnebago’s marine market foothold and augmented its revenue stream beyond RVs. The buyout is likely to have boosted the company’s top line during the to-be-reported quarter.
On the flip side, Winnebago is facing temporary hiccups owing to supply constraints and the shortage of various RV components. Rising input costs and a tight labor market are also likely to have affected the firm’s fiscal-second margins. Also, rising selling, general and distribution expenses are expected to have dented Winnebago’s cash flows and overall margins during the fiscal second quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Winnebago for the to-be-reported quarter, as it does not have the right combination of two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case as elaborated below.
Earnings ESP: Winnebago has an Earnings ESP of -2.88%. This is because the Most Accurate Estimate is pegged at $2.97, 9 cents below the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Winnebago currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Quarterly Releases of Peers
Winnebago’s closest peer Thor Industries (THO - Free Report) unveiled second-quarter fiscal 2022 results on Mar 9. The RV maker posted adjusted earnings of $4.79 per share, which beat the Zacks Consensus Estimate of $3.40. The bottom line jumped 101.3% from the year-ago profit of $2.38 per share. The company registered revenues of $3,875 million for the quarter under review, topping the Zacks Consensus Estimate of $3,553 million. The top line also recorded a 42.1% year-over-year increase.
As of Jan 31, 2022, Thor had cash and cash equivalents of $330.3 million and long-term debt of $2,167.7 million. Consolidated backlog as of quarter-end was $17.73 billion, reflecting a year-over-year rise of 60%. Thor currently carries a Zacks Rank #3.
REV Group (REVG - Free Report) , a manufacturer of industry-leading specialty vehicles, posted fiscal first-quarter 2022 results on Mar 9. The company came out with quarterly earnings of 13 cents per share, beating the Zacks Consensus Estimate of 12 cents on the back of higher-than-expected sales from the Commercial and Recreation segments. This compares unfavorably with earnings of 14 cents per share a year ago. Revenues of $537 million for the quarter ended January 2022 surpassed the Zacks Consensus Estimate by 2.14%. Revenues of $554 million were recorded a year ago.
REVG reiterated its full-year fiscal 2022 guidance of net sales in the band of $2.3-$2.55 billion. Net income is envisioned in the range of $45-$73 million. Free cash flow is expected between $58 million and $80 million. REV Group currently carries a Zacks Rank #5 (Strong Sell).
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