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Winnebago Industries tops earnings expectations despite unit volume decreases

Published 22/03/2023, 13:26
WGO
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By Sam Boughedda

Winnebago Industries (NYSE:WGO) shares are rising premarket on the back of its earnings and revenue beat.

WGO stock has gained over 3% after it posted earnings of $1.88 in the second quarter, $0.51 better than the analyst estimate of $1.37. In addition, revenue came in at $866.7 million, topping the consensus estimate of $797.25M.

Despite the beat, revenue decreased 25.6% compared to $1.2 billion in Q2 2022, driven by unit volume decreases. In addition, the company's gross profit of $146.8M represented a decrease of 32.2%, driven by decreased volume, higher material and input costs, deleverage, and productivity loss from supply disruptions. However, these were partially offset by carryover price increases in all segments.

"Winnebago Industries' second quarter results continue to demonstrate the resilience of our diversified portfolio of premium brands. Another strong quarter of performance in our Marine segment helped to offset a softening in consumer demand for RVs from recent cyclical highs," said Winnebago President and Chief Executive Officer Michael Happe.

The company's Marine segment revenues were $112.9M, up 16.1% due to carryover price increases.

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