5 Insightful Analyst Questions From Winnebago's Q2 Earnings Call
Is now the time to buy WGO? Find out in our full research report (it's free).
Revenue: $775.1 million vs analyst estimates of $781.4 million (1.4% year-on-year decline, 0.8% miss)
Adjusted EPS: $0.81 vs analyst estimates of $0.79 (2.2% beat)
Adjusted EBITDA: $46.5 million vs analyst estimates of $44.72 million (6% margin, 4% beat)
The company dropped its revenue guidance for the full year to $2.75 billion at the midpoint from $2.9 billion, a 5.2% decrease
Management lowered its full-year Adjusted EPS guidance to $1.45 at the midpoint, a 55.4% decrease
Operating Margin: 3.9%, down from 5.5% in the same quarter last year
Market Capitalization: $883.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Michael Arlington Swartz (Truist Securities) asked about the specific steps to turn around the Winnebago Motorhome business and whether exiting or consolidating parts of the business was under consideration. CEO Michael Happe emphasized a commitment to the brand and ongoing evaluation of strategic options but did not disclose any planned exits.
Tristan M. Thomas-Martin (BMO Capital Markets) inquired about expectations for the first half of next year and the impact of tariffs on different product lines. Happe explained that less than 10% of unit volume is exposed, but dollar exposure is higher, especially for motorized chassis, and updates will depend on future tariff developments.
Joseph Nicholas Altobello (Raymond James) questioned whether Winnebago is prioritizing lower-priced, more innovative motorhomes to compete amid industry discounting. Happe confirmed the need to improve the value proposition for Winnebago-branded Motorhomes and accelerate new product development.
Scott Lewis Stember (ROTH MKM) asked about consumer reaction to recent price increases related to tariffs. Happe said initial price hikes include expected tariff costs, but it is too early to gauge volume impacts as dealer inventory can buffer retail pricing effects.
James Lloyd Hardiman (Citi) requested clarity on inventory turns and whether Winnebago's discipline gives it an advantage over peers. Happe stated that a two-times turnover goal is ideal, even at the cost of short-term financial pressure, and stressed the importance of long-term dealer relationships.
Looking forward, the StockStory team will be monitoring (1) the pace and effectiveness of operational improvements in the Winnebago-branded Motorhome turnaround, (2) the impact of tariff-driven price increases on both dealer and consumer demand, and (3) ongoing market share trends in marine and RV segments as new products are launched. Updates on cost mitigation efforts and inventory discipline will also be key indicators of progress.
Winnebago currently trades at $30.93, down from $31.29 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free).
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