A month has gone by since the last earnings report for Winnebago Industries (WGO). Shares have added about 9.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Winnebago's Q2 Earnings Match Expectations, Guidance Revised
Winnebago reported adjusted earnings of 19 cents per share in second-quarter fiscal 2025 (ended March 1, 2025), in line with the Zacks Consensus Estimate. WGO reported earnings of 93 cents per share in the year-ago period. The recreational vehicle (RV) maker reported revenues of $620.2 million for the quarter under review, which surpassed the Zacks Consensus Estimate of $609 million. The top line, however, declined 11.8% year over year.
Segmental Performance
Towable RV: Revenues in the Towable RV segment rose 1.2% year over year to $288.2 million on higher volume. The metric also surpassed our estimate of $244.3 million. Total deliveries from the segment came in at 7,225 units, which increased 7.1% year over year and topped our estimate of 5,655 units. Adjusted EBITDA declined 36.5% to $17 million owing to product mix, high warranty expenses and input costs. The figure, however, came above our estimate of $16.7 million.
Motorhome RV: Revenues in the Motorhome RV segment decreased 30.4% year over year to $235.6 million due to a decline in unit volume. The top line missed our estimate of $271.3 million. Total deliveries from the Motorhome RV segment came in at 1,144 units, falling 36.8% year over year and missing our estimate of 1,443 units. The segment recorded an adjusted EBITDA of $5.2 million, down 79.8% due to volume deleverage. The metric also missed our estimate of $7.9 million.
Marine: Revenues from the segment totaled $81.7 million, up 17.1% year over year, primarily due to increased volume. The metric, however, fell short of our estimate of $92.7 million. The total deliveries from the segment came in at 1,046 units, up 21.3% year over year, but missed our estimate of 1,151 units. The segment recorded an adjusted EBITDA of $7.7 million, up 75.7% year over year due to targeted price increases, leverage and operational efficiencies. It also surpassed our expectation of $5.8 million.
Financials & Outlook
Winnebago had cash and cash equivalents of $115.5 million as of March 1, 2025. Long-term debt (excluding current maturities) totaled $539.4 million.
During the quarter under review, WGO bought back shares worth $20 million.
WGO now expects its fiscal 2025 consolidated revenues in the band of $2.8-$3 billion, down from the prior expectation of $2.9-$3.2 billion. Adjusted EPS is now estimated between $2.75 and $3.75 compared with the prior guided range of $3.10-$4.40.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -46.94% due to these changes.
VGM Scores
Currently, Winnebago has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Winnebago has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Winnebago Industries, Inc. (WGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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