Winnebago (WGO) to Report Q4 Earnings: What to Expect?

Winnebago Industries, Inc. WGO is set to report fourth-quarter fiscal 2015 (ended Aug 29, 2015) results on Oct 15. In the last quarter, the company had delivered a positive earnings surprise of 2.33%. Let us see how things are shaping up for this announcement.

Factors Influencing this Quarter

Winnebago has emerged as the top manufacturer in Class B van retail sales for 2015. The company is poised to benefit from its large motorhome market share along with its focus on business expansion and quality enhancement.

However, Winnebago expects to face challenges owing to the competitive industry, its dependence on a few dealers and the burden of repurchase agreements.

Earnings Whispers

Our proven model does not conclusively show that Winnebago is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Winnebago is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 47 cents.

Zacks Rank: Winnebago carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

AutoNation Inc. AN has an Earnings ESP of +1.91% and a Zacks Rank #2 (Buy). The company’s third-quarter 2015 financial results are scheduled for release on Oct 28.

General Motors Company GM has an Earnings ESP of +1.74% and a Zacks Rank #3. The company is expected to report third-quarter 2015 results on Oct 21.

Ford Motor Co. F has an Earnings ESP of +2.17% and a Zacks Rank #3. The company is expected to release third-quarter 2015 earnings results on Oct 27.

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