Latest news with #MichaelHappe
Yahoo
07-07-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Winnebago's Q2 Earnings Call
Winnebago faced a challenging Q2, with the market responding negatively to its results as ongoing softness in consumer demand and dealer ordering weighed on performance. Management attributed the year-on-year revenue decline and margin compression to a mix shift toward lower-priced travel trailers and continued operational inefficiencies, particularly in its Winnebago-branded Motorhome business. CEO Michael Happe cited "notable downshift in RV activity from consumers and dealers" as a headwind, while also noting that targeted cost actions and a renewed focus on operational discipline are underway. The company also experienced higher warranty costs, which further pressured gross margins during the quarter. 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). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
26-06-2025
- Business
- Yahoo
WGO Q2 Deep Dive: Margin Pressures Persist as Guidance Cut Amid Weak RV Demand
RV Manufacturer Winnebago (NYSE:WGO) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 1.4% year on year to $775.1 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $2.75 billion at the midpoint. Its non-GAAP profit of $0.81 per share was 2.2% above analysts' consensus estimates. 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: $791.4 million Winnebago faced a challenging Q2, with the market responding negatively to its results as ongoing softness in consumer demand and dealer ordering weighed on performance. Management attributed the year-on-year revenue decline and margin compression to a mix shift toward lower-priced travel trailers and continued operational inefficiencies, particularly in its Winnebago-branded Motorhome business. CEO Michael Happe cited "notable downshift in RV activity from consumers and dealers" as a headwind, while also noting that targeted cost actions and a renewed focus on operational discipline are underway. The company also experienced higher warranty costs, which further pressured gross margins during the quarter. Looking ahead, Winnebago's revised full-year outlook reflects cautious expectations around continued market headwinds, including persistent consumer uncertainty and tariff-related cost pressures. Management is prioritizing margin recapture efforts through a refreshed product lineup and operational improvements, with an eye toward stabilizing profitability into 2026. CFO Bryan Hughes emphasized that "modest price increases" are planned to offset tariff impacts, but acknowledged that the volume effect of these actions remains uncertain. The company is also closely monitoring dealer inventory health and expects a slow recovery in wholesale shipments, indicating a measured approach to production and cost management in the coming quarters. Management focused on operational turnaround efforts, product development, and inventory management as key responses to ongoing industry weakness and margin pressures. Product mix shift: The introduction of more affordable Grand Design travel trailers drove higher unit volumes but lowered average selling prices, impacting both revenue and gross margin. Operational inefficiencies: The Winnebago-branded Motorhome business continued to experience margin pressure due to excess inventory, higher discounts, and production challenges, prompting decisive actions to reduce output and improve working capital. Marine segment outperformance: While the RV business struggled, the Barletta and Chris-Craft marine brands posted higher unit sales and gained retail market share, benefiting from disciplined inventory management and new product introductions, such as the Catalina 31 and refreshed Aria lineup. Tariff management strategies: Leadership outlined active efforts to mitigate tariff costs by working with suppliers and adjusting sourcing, but acknowledged a remaining risk of $0.50–$0.75 per share in earnings exposure for the next year if further pricing or mitigation steps fall short. Market share dynamics: Despite weak industry demand, Winnebago gained share in key RV categories, especially with the Grand Design Lineage series, and saw continued momentum in towables and marine, supporting long-term brand positioning. Winnebago's outlook is shaped by expectations for continued industry weakness, targeted margin improvement initiatives, and ongoing tariff uncertainty. Margin recapture plan: Management is implementing a comprehensive strategy to improve profitability, including refreshing the Winnebago Motorhome product line, optimizing the manufacturing footprint, and streamlining operations. These actions are expected to drive margin recovery beginning in 2026, though near-term headwinds remain. Tariff and pricing impacts: The company plans modest price increases across product lines to offset residual tariff costs but warns that further escalation could pressure earnings if not fully mitigated. The effect of these price increases on sales volumes is uncertain, with management monitoring for potential demand elasticity. Dealer inventory health: Maintaining disciplined production and inventory management is a priority, with a long-term goal of achieving a two-times inventory turnover ratio for dealers. This approach may limit revenue growth in the near term but is intended to support long-term channel health and reduce competitive discounting. 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 $28.87, down from $31.29 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
25-06-2025
- Business
- Yahoo
Winnebago (NYSE:WGO) Misses Q2 Revenue Estimates
RV Manufacturer Winnebago (NYSE:WGO) fell short of the market's revenue expectations in Q2 CY2025, with sales falling 1.4% year on year to $775.1 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $2.75 billion at the midpoint. Its non-GAAP profit of $0.81 per share was 2.2% above analysts' consensus estimates. Is now the time to buy Winnebago? Find out in our full research report. 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 Free Cash Flow was -$36.1 million, down from $88.4 million in the same quarter last year Market Capitalization: $878 million 'Our fiscal third-quarter results reflect both the diverse dynamics of our business segments and the challenges posed by an uncertain economic environment,' said Michael Happe, President and Chief Executive Officer of Winnebago Industries. Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Winnebago's sales grew at a tepid 5% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Winnebago's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 16.1% annually. Winnebago isn't alone in its struggles as the Automobile Manufacturing industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. We can better understand the company's revenue dynamics by analyzing its most important segments, Motorhomes and Towables, which are 37.6% and 48% of revenue. Over the last two years, Winnebago's Motorhomes revenue (homes on wheels) averaged 20.2% year-on-year declines while its Towables revenue (non-motorized vehicles) averaged 10.6% declines. This quarter, Winnebago missed Wall Street's estimates and reported a rather uninspiring 1.4% year-on-year revenue decline, generating $775.1 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Winnebago has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.4%, higher than the broader industrials sector. Looking at the trend in its profitability, Winnebago's operating margin decreased by 10 percentage points over the last five years. Many Automobile Manufacturing companies also saw their margins fall (along with revenue, as mentioned above) because the cycle turned in the wrong direction. We hope Winnebago can emerge from this a stronger company, as the silver lining of a downturn is that market share can be won and efficiencies found. In Q2, Winnebago generated an operating margin profit margin of 3.9%, down 1.6 percentage points year on year. Since Winnebago's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Winnebago, its EPS declined by 10.3% annually over the last five years while its revenue grew by 5%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. We can take a deeper look into Winnebago's earnings to better understand the drivers of its performance. As we mentioned earlier, Winnebago's operating margin declined by 10 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Winnebago's two-year annual EPS declines of 62.9% were bad and lower than its two-year revenue performance. In Q2, Winnebago reported EPS at $0.81, down from $1.13 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 2.2%. Over the next 12 months, Wall Street expects Winnebago's full-year EPS of $1.25 to grow 126%. We enjoyed seeing Winnebago beat analysts' EPS and EBITDA expectations this quarter. On the other hand, it lowered its full-year revenue and EPS guidance. Overall, this was a softer quarter, but the stock traded up 2.3% to $32 immediately following the results. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Why Winnebago (WGO) Stock Is Trading Lower Today
Shares of RV Manufacturer Winnebago (NYSE:WGO) fell 6% in the morning session after the company reported fiscal third-quarter 2025 sales that missed analysts' of $775.1 million was down 1.4% year-over-year and slightly missed forecasts. On the other hand, the company posted adjusted earnings per share of $0.81, narrowly surpassing the consensus estimate of $0.79. The results come amid what CEO Michael Happe described as a "challenging economic environment" with soft retail demand. Despite the headwinds, the company saw unit volume growth in its Towable RV and Marine segments. However, Winnebago did lower its full-year guidance, now expecting adjusted EPS between $1.20 and $1.70, citing the uncertain economic climate. The weak stock reaction suggests investors are wary, given the cautious outlook. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Winnebago? Access our full analysis report here, it's free. Winnebago's shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 20 days ago when the stock dropped 5.1% on the news that the company reported underwhelming preliminary first-quarter (fiscal Q3) 2025 results, with sales and EPS guidance below Wall Street's estimates. Management cited some of the issues faced during the quarter adding "What began as an encouraging selling season in March was hampered by growing macroeconomic uncertainty, resulting in worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter.". Winnebago is down 38.9% since the beginning of the year, and at $29.41 per share, it is trading 54.8% below its 52-week high of $65.10 from November 2024. Investors who bought $1,000 worth of Winnebago's shares 5 years ago would now be looking at an investment worth $429.85. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
25-06-2025
- Automotive
- Yahoo
Winnebago Stock Slips as RV Maker Cuts Outlook on Economic Conditions
Winnebago Industries' fiscal third-quarter earnings and revenue declined as weak economic conditions hurt sales. The RV maker also reduced its full-year outlook. Winnebago CEO Michael Happe said the company faced the "diverse dynamics of our business segments and the challenges posed by an uncertain economic environment."Winnebago Industries (WGO) shares declined Wednesday as the recreational vehicle (RV) maker's quarterly profit and sales fell and it reduced its guidance on continued weakness in demand because of economic conditions. The company behind its namesake RVs and Chris-Craft boats reported fiscal 2025 third-quarter adjusted earnings per share (EPS) of $0.81, down from $1.10 a year ago, and revenue slipped 1.4% year-over-year to $775.1 million. Both were short of Visible Alpha estimates and fell within the ranges Winnebago issued in a preliminary report earlier this month. Towable RV sales slid nearly 4% to $371.7 million, as Winnebago sold more lower-priced products. They dropped 2.6% to $291.2 million for Motorhome RVs on falling volumes. However, Marine sales were up nearly 15% to $100.7 million on higher prices. CEO Michael Happe explained that the company faced the "diverse dynamics of our business segments and the challenges posed by an uncertain economic environment." Winnebago now anticipates fiscal 2025 adjusted EPS of $1.20 to $1.70, down from its earlier outlook of $2.75 to $3.75. It sees revenue between $2.7 billion and $2.8 billion, compared to its previous forecast of $2.8 billion to $3.0 billion. Happe noted that "the macroeconomic backdrop presents near-term challenges." Shares of Winnebago Industries fell nearly 3% about an hour after the opening bell. They have lost 36% of their value in 2025. Read the original article on Investopedia Sign in to access your portfolio
