Winnebago stock price target raised to $35 from $30 at CFRA

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Winnebago’s stock set to fall after profit beats, but revenue misses on weak motorhome sales

Winnebago Industries Inc. reported Wednesday a fiscal third-quarter profit that beat expectations but revenue that missed, as weakness in its motorhome business offset strength in towables. The stock was indicated down more than 1% in the premarket. Net income for the quarter to May 25 rose to $36.2 million, or $1.14 a share, from $32.5 million, or $1.02 a share, in the year-ago period. The results include a 6-cents-per-share benefit from tax reform. The FactSet EPS consensus was $1.00. Revenue fell 5.9% to $528.9 million, below the FactSet consensus of $569.4 million. Motorhome revenue tumbled 34.6% to $160.2 million, well below the FactSet consensus of $219.7 million, while towable revenue rose 10.8% to $346.8 million, to beat expectations of $314.8 million. Chief Executive Michael Happe said the materials cost environment remains “volatile,” as newly implemented and pending tariffs start to impact costs in the back half of 2019. The stock has soared 25.0% over the past three months through Tuesday, while the S&P 500 has gained 3.0%.

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