Winnebago Industries Inc. WGO registered adjusted earnings of 57 cents per share in the first quarter of fiscal 2018 (ended Nov 25, 2017), comfortably beating the Zacks Consensus Estimate of 50 cents. In the year-ago period, earnings were 42 cents. Net income soared 53% to $18 million.
Revenues in the reported quarter surged 83.5% to $450 million from $245.3 million in the prior-year quarter. The figure also outpaced the Zacks Consensus Estimate of $384.3 million. This upside in the top line was driven by continued strong growth of the Towable business.
Operating profit in the period under review rose 69.4% to $31.2 million from $18.4 million in the year-ago quarter. Gross profit improved to $62.8 million, growing significantly from $28.9 million a year ago.
Winnebago Industries, Inc. Price, Consensus and EPS Surprise
Segment Results
Revenues from Motorized segment declined 2.4% to $190.4 million from the year-ago period. Adjusted EBITDA dropped 71.6% to $3.2 million.
Revenues from the Towable segment improved to $259.7 million compared with $50.2 million in the first quarter of last fiscal. This upside was driven by adding revenues from the Grand Design acquisition and continued strong organic growth from Winnebago-branded Towable products. Adjusted EBITDA was pegged at $32.3 million, up $28.7 million from the prior-year quarter.
Financial Position
Winnebago had cash and cash equivalents of $54.5 million as of Nov 25, 2017 compared with $35.9 million as of Aug 27, 2017.
As of Nov 25, 2017, Winnebago’s cash flow from operations was $29.5 million, a rise of $29.6 million from the same period in fiscal 2017.
Price Performance
Shares of Winnebago have soared 73% year to date, outperforming the industry’s 56.7% rally.
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Zacks Rank & Key Picks
Winnebago carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Denso Corporation DNZOY, Tower International, Inc. TOWR and Wabco Holdings Inc. WBC, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Denso has an expected long-term growth rate of 10.1%. In the last three months, shares of the company have been up 14.7%.
Tower International has an expected long-term growth rate of 10%. Shares of the company have gained 27.4% over the last three months.
Wabco has an expected long-term growth rate of 15%. Year to date, shares of the company have surged 35.2%.
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