Winnebago (WGO 45.75, +5.40) has climbed 13.4% in
premarket after beating quarterly expectations. Today's early gain has lifted
the stock back above its 200-day moving average (44.41) for the first time
since late March.
The manufacturer of motor homes and recreational vehicles reported above-consensus third quarter earnings of $1.02 per share on an 18.0% year/year increase in revenue to $562.30 mln, which also exceeded expectations.
The company's gross margin improved to 15.2% from 14.9% one year ago. The improvement was owed to an acceleration of growth in the towable segment. Operating income grew 38.5% year/year to $48.30 mln.
Looking at the segment breakdown, Motorized segment revenue grew 3.1% year/year to $249.20 mln. Backlog grew 31.4% year/year, reflecting demand for the company's most recent vehicle launches.
Class A vehicles made up 25.3% of Motorized sales during the quarter, down from 28.5% of sales one year ago. Class B vehicles made up 21.2% of segment sales, up from 16.9% one year ago. Class C vehicles made up the remaining 53.5% of segment sales, down from 54.6% one year ago.
Towable segment revenue jumped 33.4% year/year to $313.00 mln. The sharp growth rate was driven by strong growth in Grand Design RV and Winnebago-branded product lines. Backlog increased 15.1% year/year despite a difficult comparison from the previous year. The company noted that it has been gaining market share in the segment by outpacing the industry sales growth rate for both brands.
Travel trailer sales made up 62.1% of Towable sales, up from 58.5% one year ago. Fifth wheel sales made up the remaining 37.9%, down from 41.5% one year ago.
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