Share price of Winnebago Industries, Inc. WGO increased 8.4% on Jun 26 after the company reported its third-quarter fiscal 2015 results. Winnebago recorded earnings of 44 cents per share in the third quarter of fiscal 2015 (ended May 30, 2015), up from 42 cents earned in the prior-year quarter. Also, the figure marginally surpassed the Zacks Consensus Estimate of 43 cents. Net income inched up to $11.5 million from $11.4 million in the year-ago quarter.
Revenues for the third quarter advanced 7.6% to $266.5 million from $247.7 million in the year-ago quarter. Revenues were almost in line with the Zacks Consensus Estimate of $267 million.
Operating profit for the reported quarter increased to $16.1 million from $15.6 million in the prior-year quarter. Gross profit improved 6.4% to $28.2 million or 10.6% of sales compared with $26.5 million or 10.7% of sales in the year-ago quarter. The year-over-year decline in gross margin was due to costs related to inefficiencies, partly offset by improved towable results.
Segment Details
Revenues from motorhome increased 7.4% to $237.5 million from $221.2 million in the year-ago quarter. The improvement in revenues was driven by an increase in unit shipments, partially offset by a decline in lower average selling price. Unit shipments grew 11.4% to 2,596 units from 2,331 units in the year-ago quarter. The rise in motorized unit volume was backed by higher revenue from the Apollo rental program.
Revenues from towable increased 15.9% to $19.9 million from $17.2 million in the year-ago quarter. The rise in revenues was led by an increase in unit shipments and higher average selling price. Unit shipments went up 2.1% to 742 units from 727 units in the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $49.2 million as of May 30, 2015, compared with $57.8 million as of Aug 30, 2014.
In the first nine months of fiscal 2015, Winnebago’s cash flow from operations stood at $18.6 million, rising from $10.2 million in the year-ago quarter. Capital expenditure increased to $14.1 million from $4.6 million in the first nine months of fiscal 2014.
Dividend
On Jun 17, 2015, the board of directors of Winnebago declared a quarterly dividend of 9 cents per share, to be paid on Aug 6, to stockholders on record as of Jul 22, 2015.
Zacks Rank
Winnebago currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Fox Factory Holding Corp FOXF, O'Reilly Automotive Inc. ORLY and U.S. Auto Parts Network, Inc. PRTS, all carrying a Zacks Rank #2 (Buy).
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