Yahoo Finance Winnebago (WGO) Rides on Towable Segment's Robust Growth
On Dec 27, we issued an updated research report on Winnebago Industries, Inc. WGO.
On Dec 20, Winnebago reported adjusted earnings per share of 57 cents for first-quarter fiscal 2018 (ended Nov 25, 2017), beating the Zacks Consensus Estimate of 50 cents. Quarterly revenues soared 83.5% year over year to $450 million. The top line also surpassed the consensus mark of $384.3 million.
The company’s towable segment has been witnessing high-growth rates on increased sales volume, a favorable product mix and the inclusion of Grand Design RV within the segment. In fiscal 2017, the segment returned 44.3% to net revenues in comparison to the 9.2% contribution in fiscal 2016. Further, Winnebago expects continued growth in this segment on the back of strong retail sales.
Winnebago Industries, Inc. Price and Consensus
Winnebago Industries, Inc. Price and Consensus | Winnebago Industries, Inc. Quote
Moreover, the acquisition of Grand Design in October 2016 has transformed the company’s product offering, enabling it to augment its market share and profitability.
Also, in order to boost shareholders’ confidence in Winnebago, its management frequently undertakes share repurchase programs and pays regular dividends. At the beginning of the month, the company announced a quarterly dividend of 10 cents to be paid on Jan 24, 2018 to stockholders of record as of Jan 10, 2018.
The stock has seen the Zacks Consensus Estimate for annual earnings being revised 6.6% upward over the last 60 days.
Price Performance
Shares of Winnebago have plunged 79.5% year to date, substantially outperforming the 56.5% surge of the industry it belongs to.
Zacks Rank & Other Key Picks
Winnebago sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the auto space include BMW AG BAMXF, BorgWarner, Inc. BWA and Honda Motor Company HMC, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BMW has an expected long-term growth rate of 4.2%. In the last 30 days, shares of the company have gained 2.9%.
BorgWarner has an expected long-term growth rate of 8.6%. Shares of the company have rallied 25.1% over the last six months.
Honda has an expected long-term growth rate of 3.8%. Over a month, shares of the company have risen 3.4%.
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