Winnebago shares slide after quarterly report

Winnebago Industries

23/10/2024 17:25

** Shares in recreational vehicle company Winnebago Industries
 WGO.N  down 9.6% on Weds, hitting lowest level since early July
after reporting fiscal Q4 loss vs year-ago profit
    ** Stock, on track for biggest one-day pct loss in two
years, last traded at $52.48 vs session low of $51.19;  Wall
Street's median PT for stock is $68, according to LSEG  
    ** WGO report of adj. loss/shr of $1.01 compares with Wall
St consensus expectation for EPS of $0.89, as per LSEG 
    ** However, rev of $720.9 mln, down 6.5% y/y  was ahead of
analyst consensus view of $719.14 ahead of report, as per LSEG
    ** Co said Q4 missed expectations due to sluggish retail
demand, operating inefficiencies in Winnebago brand businesses.
Also cites RV industry headwinds: uncertain retail conditions,
higher inventory carrying costs, slightly elevated motorhome
inventories, dealer hesitancy, increased promotional efforts. 
    ** WGO forecast FY 2025 rev of $2.9 billion to $3.2 billion
vs 2024 FY rev of $3.0 bln, sees FY adj EPS of $3.00 to $4.50 vs
its report of adj EPS of $3.40 for FY 2024   
    ** Co says that while interest rate easing expected to
bolster consumer demand into 2H 2025 calendar yr, near-term
visibility limited due to potential for economic instability,
likelihood of continued industry-wide RV destocking
    ** YTD shares in WGO down ~28% vs ~2% gain for S&P 600
consumer discretionary index  .SPSMCD 

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))