RV Manufacturer Winnebago (NYSE: WGO) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Winnebago missed analysts’ revenue expectations last quarter, reporting revenues of $698.7 million, down 9.9% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Is Winnebago a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Winnebago’s revenue to decline 15% year on year, a reversal from the 7.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Winnebago has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Winnebago’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 10.1%, and Apogee reported revenues up 9.2%, topping estimates by 11.3%. Richardson Electronics’s stock price was unchanged after the resultswhile Apogee was up 15.3%.
Read our full analysis of Richardson Electronics’s results here and Apogee’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.9% on average over the last month. Winnebago is down 16% during the same time and is heading into earnings with an average analyst price target of $37.30 (compared to the current share price of $22.85).
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