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Winnebago's fiscal 1Q sales growth drives earnings beat

Sales growth motors higher for the company synonymous with its leisure vehicles
A Winnebago on the road.
Winnebago Industries manufactures and sells recreation vehicles and marine products

Winnebago Industries (NYSE:WGO) reported better-than-expected fiscal first-quarter 2019 results, driving the shares higher in Wednesday's pre-market trading.

The maker of recreational vehicles said quarterly revenue reached $493.6 million, almost 10% higher than the $450 million in the year-ago period and beating the consensus of $486.4 million.

Earnings per share reached $0.70 on net income of $22.2 million, compared with EPS of $0.57 a year ago on net income then of $18 million. The consensus EPS was $0.64.

"Sales growth remained robust as we continued to take overall retail market share on the RV side, and we were successful in expanding margins during the quarter, primarily driven by the continued profitability recovery within our Motorhome segment," said CEO Michael Happe. 

Shares of Winnebago rose almost 9.5% to $21.85.

READ: Winnebago reports beat on 4Q revenue and earnings as full year sales hit $2 billion, shares climb

Happe added: "We were also satisfied with the strong reception our new products received at both the RV Open House and the Fort Lauderdale International Boat Show this fall."

Motorhome segment revenue was $181.3 million, down 3.6% from the previous year. But Towable segment revenue hit $292.8 million for the first quarter, up 12.8% over the prior year, driven by continued strong organic unit growth across the Grand Design RV branded line and pricing, Winnebago said.

Winnebago Industries manufactures and sells recreational vehicles and marine products for use in leisure travel and outdoor recreation activities.

The Iowa-based company operates in five segments: Winnebago Motorhomes, Winnebago Towables, Grand Design Towables, Winnebago Specialty Vehicles, and Chris-Craft Marine.

 

Contact Rene Pastor by [email protected]

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