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Winnebago (WGO) Q4 Earnings & Revenues Top Estimates, Up Y/Y

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Share price of Winnebago Industries Inc. (WGO - Free Report) increased 3.27% to $45.85 per share on Oct 19 owing to better-than-expected earnings and revenues in the fourth quarter of fiscal 2017 (ended Aug 26, 2017).

Winnebago recorded earnings of 79 cents per share in the fourth quarter. The earnings per share after adjusting amortization and non-recurring costs came in at 94 cents, comfortably beating the Zacks Consensus Estimate of 72 cents. For the year-ago period, earnings were 49 cents per share. Net income on a reported basis soared 89.6% to $24.9 million or 70 cents per share.

Revenues in the fourth quarter surged 72.8% to $454.9 million from $263.3 million in the prior-year quarter. The figure also outpaced the Zacks Consensus Estimate of $443 million. This upside in the top line was driven by strong growth of the Towable business.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

 

Operating profit in the reported quarter skyrocketed 130.2% to $43.5 million from $18.9 million in the year-ago quarter. Gross profit improved to $73.6 million, a rally of 16.2% from $31.9 million, recorded a year ago.

Fiscal 2017 Results

Winnebago reported a 38% rise in EPS of $2.32 for fiscal 2017, whereas the Zacks Consensus Estimate was $2.24.

Annual revenues increased 58.6% year over year to $1.55 billion, almost in line with the Zacks Consensus Estimate.

Segment Results

Revenues from Motorized segment declined 4.4% to $226.2 million from the year-ago period. Adjusted EBITDA dropped 31% to $12.2 million, primarily driven by pricing adjustments and transitioning production costs related to the company’s facility at Junction City, OR.

Revenues from the Towable segment went up to $228.7 million in comparison to $202.1 million in the fourth quarter of fiscal 2017. This upside was driven by adding revenues from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA was pegged at $35.6 million, up $34.8 million from the year-ago quarter.

Financial Position

Winnebago had cash and cash equivalents of $35.9 million as of Aug 26, 2017 compared with $85.6 million as of Aug 27, 2016.

At the fiscal 2017-end, Winnebago’s cash flow from operations was $97.1 million, an 84% surge from the year-ago period.

Dividend

On Oct 18, 2017, the board of directors at Winnebago approved a quarterly dividend of 10 cents per share, payable on Nov 29 to stockholders of record as of Nov 15.

Price Performance

Shares of Winnebago have gained 44.9% year to date, outperforming the industry’s 34.8% rally.

Zacks Rank & Other Key Picks

Winnebago currently sports a Zacks Rank #1(Strong Buy).

Other top-ranked companies in the auto space are Lear Corporation (LEA - Free Report) , Ferrari N.V. (RACE - Free Report) and PACCAR Inc. (PCAR - Free Report) , all sporting a Zacks Rank of 1 as well. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lear has an expected long-term growth rate of 7.1%.

Ferrari has an expected long-term growth rate of 14.1%.

PACCAR has an expected long-term growth rate of 10%.

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