Shares of Winnebago Industries Inc. skidded lower Wednesday after the recreational-vehicle maker reported fiscal third-quarter net profit that was less than half what it was last year and revenue that fell short of forecasts, with a big miss in its motor-home business.
Net income for the quarter to May 27 fell to $59.1 million, or $1.71 a share, from $117.2 million, or $3.57 a share, in the same period a year ago.
Excluding nonrecurring items, adjusted earnings per share fell to $2.13 from $4.13 but was above the FactSet consensus of $1.78.
Revenue dropped 38.2% to $900.8 million, with the company citing lower unit sales related to RV retail market conditions and higher discounts, which were partially offset by price increases. That missed the FactSet consensus of $977.1 million and snapped a 15-quarter streak of revenue beats.
The stock
WGO,
slumped 1.4% in afternoon trading, but pared earlier losses of as much as 8.1%. It has dropped 5.5% amid a four-day losing streak since closing at a four-month high of $66.91 on June 13.
Among the company’s business segments, Towable RV revenue tumbled 52.3% to $384.1 million, just shy of the FactSet consensus of $386.5 million; Motorhome RV revenue fell 27.5% to $374.4 million, well below expectations of $457.7 million; and Marine revenue rose 1.9% to $129 million but missed expectations of $134.8 million.
Cost of sales fell less than revenue, as gross margin contracted to 16.8% from 18.7%.
“Looking ahead for the rest of the fiscal year, we anticipate [softening] consumer demand for RV and cautious ordering behavior from dealers to continue, as market conditions persist,” said Chief Executive Michael Happe on a post-earnings conference call with analysts, according to an AlphaSense transcript.
Winnebago’s stock has rallied 20.0% year to date, while the S&P 500
SPX,
has advanced 14.1%.
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