What's Next: Winnebago Industries's Earnings Preview

Winnebago Industries WGO is set to give its latest quarterly earnings report on Wednesday, 2024-10-23. Here's what investors need to know before the announcement.

Analysts estimate that Winnebago Industries will report an earnings per share (EPS) of $0.96.

Winnebago Industries bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company missed EPS by $0.19, which was followed by a 1.28% drop in the share price the next day.

Here's a look at Winnebago Industries's past performance and the resulting price change:

Tracking Winnebago Industries's Stock Performance

Shares of Winnebago Industries were trading at $58.1 as of October 21. Over the last 52-week period, shares are up 0.81%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Winnebago Industries

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Winnebago Industries.

A total of 2 analyst ratings have been received for Winnebago Industries, with the consensus rating being Buy. The average one-year price target stands at $69.0, suggesting a potential 18.76% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Polestar Automotive and Workhorse Gr, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Polestar Automotive is maintaining an Outperform status according to analysts, with an average 1-year price target of $2.48, indicating a potential 95.73% downside.
• As per analysts' assessments, Workhorse Gr is favoring an Neutral trajectory, with an average 1-year price target of $0.25, suggesting a potential 99.57% downside.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for Polestar Automotive and Workhorse Gr are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Winnebago Industries ranks highest in gross profit among its peers. However, it ranks lowest in revenue growth and return on equity.

All You Need to Know About Winnebago Industries

Winnebago Industries manufactures Class A, B, and C motor homes along with towables, customized specialty vehicles, boats, and parts. Headquartered in Eden Prairie, Minnesota, Winnebago has been producing recreational vehicles since 1958. Revenue was about $3.5 billion in fiscal 2023. Winnebago expanded into towables in 2011 with the acquisition of SunnyBrook and acquired Grand Design in November 2016. Towables made up 79% of the firm's RV unit volume, up from 31% in fiscal 2016. The company's total RV unit volume was 39,447 in fiscal 2023. Winnebago expanded into boating in 2018 with the purchase of Chris-Craft, bought premium motor home maker Newmar in November 2019, and bought Barletta pontoon boats in August 2021. It also is developing electric and autonomous technology.

Unraveling the Financial Story of Winnebago Industries

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Winnebago Industries's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -12.74% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Winnebago Industries's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.69%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Winnebago Industries's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.19%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Winnebago Industries's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.19%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.56.

To track all earnings releases for Winnebago Industries visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.