Share price of Winnebago Industries, Inc. WGO increased 0.9% to $23.15 on Jun 23 after the company reported impressive third-quarter fiscal 2016 results. Winnebago recorded earnings of 53 cents per share in the third quarter (ended May 28, 2016) of fiscal 2016, 25.5% higher than 43 cents earned in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of 46 cents. Net income increased to $14.4 million from $11.5 million in the year-ago quarter.
Revenues for the third quarter rose 2.1% to $272.1 million from $266.5 million in the prior-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $270 million. The year-over-year improvement in the top line was driven by higher motorized unit shipments together with higher revenues from the towable segment.
Unit shipments in the towables segment surged 62.4% while that of motorhomes increased 12.4% year over year.
Operating profit for the reported quarter rose to $20.6 million from $16.1 million in the prior-year quarter. Gross profit improved to $30.3 million or 11.1% of sales from $28.2 million or 10.6% of sales a year ago. The year-over-year increase in gross margin was backed by realization of cost-saving benefits related to Winnebago’s strategic sourcing initiative, leading to lower raw material costs. Gross margin expansion was also aided by a favorable product mix. However, these gains were partly offset by higher warranty expense.
WINNEBAGO Price, Consensus and EPS Surprise
WINNEBAGO Price, Consensus and EPS Surprise | WINNEBAGO Quote
Financial Position
Winnebago had cash and cash equivalents of $71.3 million as of May 28, 2016, compared with $70.2 million as of Aug 29, 2015.
In the first nine months of fiscal 2016, Winnebago’s cash flow from operations was $31.7 million, up from $18.6 million in the year-ago period. Capital expenditure increased to $19.9 million from $14.1 million in the first nine months of fiscal 2015.
Dividend
On Jun 15, 2016, the board of directors of Winnebago approved a quarterly dividend of 10 cents per share. The dividend will be paid on Jul 27, to stockholders on record as of Jul 13.
Zacks Rank
Winnebago currently carries a Zacks Rank #3 (Hold).
Some better-ranked automobile stocks include Lear Corp. LEA, Oshkosh Corporation OSK and Superior Industries International, Inc. SUP, all sporting a Zacks Rank #1 (Strong Buy).
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