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Winnebago's (WGO) Q1 Earnings & Revenues Miss Estimates

Winnebago Industries, Inc.WGO recorded earnings of 32 cents per share in the first quarter of fiscal 2016 (ended Nov 28, 2015), down from 37 cents earned in the prior-year quarter. Also, the figure missed the Zacks Consensus Estimate of 37 cents. Net income dropped to $8.6 million from $9.9 million in the year-ago quarter.

Revenues for the first quarter fell 4.5% to $214.2 million from $224.4 million in the prior-ago quarter. Moreover, the figure fell short of the Zacks Consensus Estimate of $226 million. The year-over-year decline in revenues was due to lower motorized unit shipments.

Revenues from the towables segment increased 24.1%, backed by a 49.5% rise in unit volume, partly offset by a 175.5% fall in average selling price. Unit shipments of motorhomes declined 5.4% year over year. In first-quarter fiscal 2016, motorhome retail registrations rose 3%, while towable retail registrations increased 10%.

Operating profit for the reported quarter decreased to $12.8 million from $14.4 million in the prior-year quarter. Gross profit improved to $25.2 million or 11.8% of sales from $24.4 million or 10.9% of sales in the year-ago quarter. The year-over-year increase in gross margin was backed by better motorized product mix, higher contribution from towables, lower workers' compensation expense and the realization of cost-saving benefits related to Winnebago's strategic sourcing initiative. This was partly offset by continued labor-related manufacturing inefficiencies and unfavorable trends in warranty expense.

Financial Position

Winnebago had cash and cash equivalents of $55.7 million as of Nov 28, 2015, compared with $70.2 million as of Aug 29, 2015.

In first quarter fiscal 2016, Winnebago's cash used in operations stood at $8.1 million, down from $19.6 million in the year-ago period. Capital expenditure increased to $3.1 million from $2.3 million in first-quarter fiscal 2015.

Dividend

On Dec 16, 2015, the board of directors of Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Jan 27, 2016, to stockholders on record as of Jan 13.

Zacks Rank

Winnebago currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include General Motors Co. GM , O'Reilly Automotive Inc. ORLY and U.S. Auto Parts Network, Inc. PRTS . General Motors currently sports a Zacks Rank #1 (Strong Buy), while O'Reilly and U.S. Auto Parts carry a Zacks Rank #2 (Buy).

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O REILLY AUTO (ORLY): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

WINNEBAGO (WGO): Free Stock Analysis Report

US AUTO PARTS (PRTS): Free Stock Analysis Report

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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.


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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