Winnebago Industries WGO reported adjusted earnings of 28 cents per share for fourth-quarter fiscal 2024 (ended Aug. 31, 2024), missing the Zacks Consensus Estimate of 91 cents and plunging 82.3% year over year. The recreational vehicle (RV) maker reported revenues of $720.9 million for the quarter under review, which fell short of the Zacks Consensus Estimate of $726 million. The top line also declined 6.5% year over year.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote

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Segmental Performance

Towable RV: Revenues in the Towable RV segment declined 7.2% year over year to $317 million amid lower average selling price per unit. The metric also missed our estimate of $346 million. Total deliveries from the segment came in at 8,183 units, which increased 6.1% year over year and beat our estimate of 7,819 units. Adjusted EBITDA declined 52% to $20.6 million owing to operational inefficiency and high warranty costs. The figure also came below our estimate of $33 million. The segment’s backlog was $137.1 million (4,850 units), down 34%.

Motorhome RV: Revenues in the Motorhome RV segment slid 3.1% year over year to $308 million due to a decline in unit volume. The top line also missed our estimate of $311 million. Total deliveries from the Motorhome RV segment came in at 1,545 units, falling 2.8% year over year and missing our estimate of 1,580 units. The segment recorded an adjusted EBITDA of $13 million, down 42% due to deleveraging, high warranty expenses and operational challenges. The metric also missed our estimate of $20 million. The backlog was $234.4 million (897 units), down 66% from the prior-year quarter.

Marine: Revenues from the segment totaled $80.5 million, down 16.6% year over year, primarily due to lower volume. The metric also lagged our estimate of $87 million. The total deliveries from the segment came in at 1,042 units, down 10.3% year over year, and fell short of our estimate of 1,067 units. The segment recorded an adjusted EBITDA of $5.5 million, down 45.7% year over year due to deleveraging. The metric missed our estimate of $6.8 million. The backlog for the Marine segment was $260 million (3,403 units), up 33.5%.

Financials & Outlook

Winnebago had cash and cash equivalents of $331 million as of Aug. 31, 2024. Long-term debt (excluding current maturities) increased to $637 million from $592.4 million recorded as of Aug. 26, 2023.

During the quarter under review, WGO bought back shares worth $10 million. The company paid a dividend of 34 cents per share on Sept. 25, 2024, to shareholders of record as of Sept. 11, 2024.

WGO expects its fiscal 2025 consolidated revenues in the band of $2.9-$3.2 billion. Adjusted EPS is estimated to be between $3.00 and $4.50.

WGO has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Thor Industries THO released fourth quarter of fiscal 2024 (ended July 31, 2024) results last month. It reported earnings of $1.68 per share, which beat the Zacks Consensus Estimate of $1.35. The bottom line remained flat from the year-ago quarter’s earnings. Revenues of $2.53 billion surpassed the Zacks Consensus Estimate of $2.46 billion. The top line, however, declined 7.4% year over year. Thor projects its fiscal 2025 consolidated net sales in the range of $9-$9.8 billion and EPS within $4-$5.

REV Group REVG reported fiscal third-quarter results last month. It came out with quarterly earnings of 48 cents per share, beating the Zacks Consensus Estimate of 44 cents per share. This compares to earnings of 35 cents per share a year ago. Revenues of $579.4 million for the quarter ended July 2024 missed the Zacks Consensus Estimate by 7.10%. This compares to year-ago revenues of $680 million. REV Group expects fiscal 2024 net sales in the range of $2.35-$2.45 billion and adjusted net income in the band of $76-$89 million.

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