Latest news with #Winnebago
Yahoo
3 days ago
- Automotive
- Yahoo
Winnebago (WGO) Up 9.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Winnebago Industries (WGO). Shares have added about 9.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Winnebago due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Winnebago's Q2 Earnings Match Expectations, Guidance Revised Winnebago reported adjusted earnings of 19 cents per share in second-quarter fiscal 2025 (ended March 1, 2025), in line with the Zacks Consensus Estimate. WGO reported earnings of 93 cents per share in the year-ago period. The recreational vehicle (RV) maker reported revenues of $620.2 million for the quarter under review, which surpassed the Zacks Consensus Estimate of $609 million. The top line, however, declined 11.8% year over year. Segmental Performance Towable RV: Revenues in the Towable RV segment rose 1.2% year over year to $288.2 million on higher volume. The metric also surpassed our estimate of $244.3 million. Total deliveries from the segment came in at 7,225 units, which increased 7.1% year over year and topped our estimate of 5,655 units. Adjusted EBITDA declined 36.5% to $17 million owing to product mix, high warranty expenses and input costs. The figure, however, came above our estimate of $16.7 RV: Revenues in the Motorhome RV segment decreased 30.4% year over year to $235.6 million due to a decline in unit volume. The top line missed our estimate of $271.3 million. Total deliveries from the Motorhome RV segment came in at 1,144 units, falling 36.8% year over year and missing our estimate of 1,443 units. The segment recorded an adjusted EBITDA of $5.2 million, down 79.8% due to volume deleverage. The metric also missed our estimate of $7.9 million.: Revenues from the segment totaled $81.7 million, up 17.1% year over year, primarily due to increased volume. The metric, however, fell short of our estimate of $92.7 million. The total deliveries from the segment came in at 1,046 units, up 21.3% year over year, but missed our estimate of 1,151 units. The segment recorded an adjusted EBITDA of $7.7 million, up 75.7% year over year due to targeted price increases, leverage and operational efficiencies. It also surpassed our expectation of $5.8 million. Financials & Outlook Winnebago had cash and cash equivalents of $115.5 million as of March 1, 2025. Long-term debt (excluding current maturities) totaled $539.4 the quarter under review, WGO bought back shares worth $20 million. WGO now expects its fiscal 2025 consolidated revenues in the band of $2.8-$3 billion, down from the prior expectation of $2.9-$3.2 billion. Adjusted EPS is now estimated between $2.75 and $3.75 compared with the prior guided range of $3.10-$4.40. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -46.94% due to these changes. VGM Scores Currently, Winnebago has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Winnebago has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
21-07-2025
- Automotive
- Yahoo
General Motors (GM) Q2 Earnings Report Preview: What To Look For
Automotive manufacturer General Motors (NYSE:GM) will be announcing earnings results this Tuesday before the bell. Here's what investors should know. General Motors beat analysts' revenue expectations by 2.7% last quarter, reporting revenues of $44.02 billion, up 2.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts' adjusted operating income estimates but a significant miss of analysts' EBITDA estimates. Is General Motors a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting General Motors's revenue to decline 2.7% year on year to $46.66 billion, a reversal from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.47 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. General Motors has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 4% on average. Looking at General Motors's peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Winnebago's revenues decreased 1.4% year on year, missing analysts' expectations by 0.8%, and Lindsay reported revenues up 21.7%, topping estimates by 4.6%. Winnebago traded down 8.5% following the results while Lindsay was up 3.9%. Read our full analysis of Winnebago's results here and Lindsay's results here. There has been positive sentiment among investors in the industrials segment, with share prices up 6.5% on average over the last month. General Motors is up 9.9% during the same time and is heading into earnings with an average analyst price target of $56.08 (compared to the current share price of $53.31). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
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.
Axios
01-07-2025
- Business
- Axios
Backlash grows as Iowa closes historic research center
The State Historical Society of Iowa (SHSI) is closing its historic Centennial Building research center in Iowa City, will no longer edit the Annals of Iowa journal, and has ended its popular mobile museum. Why it matters: The decisions were made without public input and risk abandoning a core SHSI mission to safeguard the state's heritage, according to an online petition from the Save Iowa History Coalition. Catch up quick: SHSI staff made the decisions in the last six weeks with the help of the Iowa Department of Administrative Services (DAS) as the agency faces a projected $800,000 budget shortfall. The staff had only a few weeks to close a budget gap for the fiscal year that starts in July 2026, Valerie Van Kooten, administrator of the SHSI, told the SHSI Board of Trustees in a meeting last week. The decisions did not require the board's approval, DAS director Adam Steen told trustees who asked why they hadn't been informed about the research center closure prior to a June 17 press release. State of play: The SHSI has used the Centennial Building as a research center for nearly 70 years, providing public access to tens of thousands of one-of-a-kind documents, photos and newspaper articles. The building needs at least $750,000 in maintenance, which factored into the decision to close it, Van Kooten told the board last week. A $5 million revamp of archival storage at the State Historical Building in DSM will be completed in 2028 and will accommodate the Centennial Building's collections, SHSI said in a news release. Zoom in: Annals of Iowa, which has been part of the government for more than 160 years, will no longer be edited by the state starting in July 2026. SHSI staff are seeking a collaboration with a state university to take over the work. Meanwhile, SHSI recently ended its Mobile Museum — a 38-foot custom-built Winnebago that had traveled to every county in the state multiple times since 2017 — because of costly repairs, Van Kooten said. What they're saying:"You're not being transparent," Mary Bennett, a retired special collections coordinator at the Iowa City site, told SHSI staff in a contentious public meeting last week. "Gov. Reynolds and your office made this decision unilaterally, relying on a very small handful of people, and I'm sorry, but this is erasing our history," Bennett said. The other side: Historical items will be protected and the service decisions will ultimately position the SHSI to grow, Steen said at last week's meeting.
Yahoo
27-06-2025
- Automotive
- Yahoo
1 Industrials Stock for Long-Term Investors and 2 to Ignore
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. Thankfully, industrial end markets were stable over the past six months as the industry's 1.5% gain has nearly mirrored the S&P 500. Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Taking that into account, here is one industrials stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $25.06 billion Spun off from Danaher in 2023, Veralto (NYSE:VLTO) provides water analytics and treatment solutions. Why Are We Out on VLTO? 3.6% annual revenue growth over the last two years was slower than its industrials peers Estimated sales growth of 3.6% for the next 12 months is soft and implies weaker demand Earnings per share fell by 1.7% annually over the last two years while its revenue grew, partly because it diluted shareholders Veralto's stock price of $101.12 implies a valuation ratio of 27.2x forward P/E. Check out our free in-depth research report to learn more about why VLTO doesn't pass our bar. Market Cap: $802.5 million 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. Why Do We Avoid WGO? Products and services are facing significant end-market challenges during this cycle as sales have declined by 16.1% annually over the last two years Diminishing returns on capital suggest its earlier profit pools are drying up Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $28.77 per share, Winnebago trades at 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than WGO. Market Cap: $6.06 billion Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Why Is ROAD a Good Business? Exciting sales outlook for the upcoming 12 months calls for 40.5% growth, an acceleration from its two-year trend Earnings per share have massively outperformed its peers over the last two years, increasing by 91% annually Historical investments are beginning to pay off as its returns on capital are growing Construction Partners is trading at $108.09 per share, or 45.9x forward P/E. Is now the time to initiate a position? Find out 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
