Winnebago Beats Q3 Earnings On Expanded Margins, Sees Record Backlog

Winnebago Industries Inc WGO reported third-quarter FY21 revenue of $960.7 million, up 138.7% year-on-year, beating the analyst consensus of $839.2 million.
Towable segment revenue grew 194.2% Y/Y to $555.7 million, driven by heightened consumer demand for Grand Design and Winnebago branded products. Motorhome revenue of $385.3 million increased 89.2% Y/Y, driven by consumer demand for Winnebago and Newmar branded motorhomes.
Gross margin increased 970 basis points Y/Y to 17.7%, driven primarily by operating leverage, pricing, lower discounts and allowances, and favorable segment mix.
The operating margin was 10.6%.
Adjusted EBITDA saw a significant jump to $109.8 million, compared to $4.1 million a year ago.
Adjusted EPS of $2.16 grew 930.7% Y/Y, beating the analyst consensus of $1.77.
Winnebago’s cash and equivalents totaled $406.8 million, and it generated $147.95 million in operating cash flow.
Winnebago’s backlog increased 252.4% Y/Y to 46,646 units amounting to $1.5 billion, reflecting strong consumer demand.
“We remain focused on working with our suppliers to sustain strong levels of production and with our dealer network to replenish their inventories in the face of record backlog,” said Michael Happe, Chief Executive Officer.
Price action: WGO shares are trading lower by 1.28% at $65.69 on the last check Wednesday.

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