Winnebago Q3 Earnings Beats Estimates, Barletta Brand Remains A Bright Spot

Winnebago Industries, Inc. WGO reported a third-quarter FY23 sales decline of 38.2% year-on-year to about $900 million, missing the consensus of $961 million.

Adjusted EPS of $2.13 beats the analyst consensus of $1.83.

"The Barletta brand, in particular, remains a bright spot in our portfolio, delivering strong market share gains in aluminum pontoons," said CEO Michael Happe.

Towable RV segment revenue fell 52.3% Y/Y to $384.1 million, driven by a decline in unit volume.

Motorhome revenue was $374.4 million for the third quarter, down 27.5% from the prior year. 

Revenues for the Marine segment were $129 million for the third quarter, up 1.9% due to carryover price increases. 

Also Read: Winnebago Ramps Up Its Engineering Capabilities Via Acquisition Of Lithionics Battery

Gross profit decreased 44.5% Y/Y to $151.4 million, and gross profit margin contracted 190 basis points Y/Y to 16.8%.

Winnebago's cash and equivalents totaled $225.9 million as of the quarter's end.

As of May 27, the company had total outstanding debt of $591.7 million and working capital of $574.7 million. 

"During the quarter we also announced and closed the strategic vertical technology acquisition of Lithionics Battery, which will accelerate our innovation capabilities in diverse battery solutions, advance our overall electrical supply ecosystem and create opportunities for our RV and marine customers to enjoy fully immersive, off-the-grid outdoor experiences," Happe added.

Dividend: On May 17, the Forest City, Iowa-based company approved a quarterly cash dividend of $0.27 per share, payable on June 28, to common stockholders of record at the close of business on June 14. 

Share Repurchases: Winnebago Industries executed share repurchases of $20 million during the third quarter.

Price Action: WGO shares are trading lower by 6.12% at $60.25 in premarket on the last check Wednesday.