What You Need to Know Ahead of Winnebago (WGO) Q3 Earnings

Winnebago Industries WGO is scheduled to release third-quarter fiscal 2023 results on Jun 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.74 and $950.65 million, respectively.

The Zacks Consensus Estimate for Winnebago’s fiscal third-quarter earnings per share has been revised downward by 2 cents in the past 30 days. The bottom line projection implies a year-over-year decline of 57.9%. The Zacks Consensus Estimate for revenues also suggests a year-over-year contraction of 34.8%.

One of the leading recreational vehicle (RV) manufacturers in the world, Winnebago, posted better-than-expected earnings in the last reported quarter on higher-than-anticipated EBITDA across all segments. The bottom line, however, plunged 40% year over year.

The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 23.44%.

Winnebago Industries, Inc. Price and EPS Surprise

Winnebago Industries, Inc. Price and EPS Surprise

Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote

Things to Note

Winnebago has been riding on the strength of Grand Design and Chris-Craft buyouts. The Grand Design acquisition expanded the company’s towable RV product offerings. The Chris-Craft takeover enabled it to enter the marine segment and the Barletta buy further improved the unit’s prospects. The buyout of the Newmar Corporation has also enhanced its customer network, portfolio and revenues. These acquisitions are likely to have bolstered Winnebago’s top-line growth in the quarter under review.

Let’s look at the key third-quarter fiscal 2023 projections for the company’s segments.

The Zacks Consensus Estimate for fiscal third-quarter revenues from the Towable segment is pegged at $386 million, indicating a decline from the $806 million recorded in the year-ago quarter. The consensus estimate for adjusted EBITDA is pegged at $36.81 million, suggesting a decline from the $118 million reported in the corresponding quarter of fiscal 2022.

The consensus mark for revenues from the Motor Home segment is $453 million, indicating a decline from $516 million recorded in the previous-year quarter. The consensus estimate for units sold is 2,232, suggesting a decline from the 3,201 reported in the year-ago period. The adjusted EBITDA estimate of the segment is $38.34 million, implying a fall from $64 million recorded in third-quarter fiscal 2022.

The consensus mark for revenues from the Marine segment is $131 million, implying a rise from $127 million recorded in the year-ago quarter. However, the adjusted EBITDA estimate for the segment is $11.82 million, implying a contraction from $19.81 million generated in the fiscal third quarter of 2022.

What Does Our Model Say

Our proven model predicts an earnings beat for Winnebago in the to-be-reported quarter, as it has the right combination of the two key ingredients. The 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. That’s not the case here.

Earnings ESP: WGO has an Earnings ESP of +2.55%. This is because the Most Accurate Estimate is pegged 4 cents higher than 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 #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What Did Thor’s Latest Quarterly Report Unveil?

Close peer Thor Industries THO released third-quarter fiscal 2023 results on Jun 6. It posted adjusted earnings of $2.24 per share, which lagged the Zacks Consensus Estimate of $1.13. However, the bottom line declined massively by 64.6% from the year-ago profit of $6.32 per share. The company registered revenues of $2,928.8 million for the quarter under review, outpacing the Zacks Consensus Estimate of $2,838 million. However, the top line declined 37.1% year over year.

Thor also revised its guidance for fiscal 2023. It projects full-year consolidated net sales in the range of $10.5-$11.5 billion. The consolidated gross profit margin is expected to be 13.4-14.2%. Diluted earnings per share are expected to be $5.80-$6.50.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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