Winnebago’s Stock Set For Worst Day In 2 Years After Major Profit Miss: Retail Turns Bearish

Winnebago Industries Inc. ($WGO) shares fell over 7% at the open on Wednesday, poised for their worst day since October 2022 if losses hold, following a significant miss on quarterly profit estimates. 

For the fiscal fourth quarter, Winnebago reported a net loss of $29.1 million, or $1.01 per share, a sharp decline from a net income of $43.8 million, or $1.28 per share, during the same period last year. 

Adjusted earnings, which excluded non-recurring items such as a goodwill write-off related to its Chris-Craft business, dropped to $0.28 per share from $1.41, significantly missing the FactSet consensus estimate of $0.89.

CEO Michael Happe blamed the company’s underperformance to sluggish retail demand and operational inefficiencies within the Winnebago brand. 

He noted that the RV industry is grappling with various challenges, including uncertain retail conditions, higher inventory carrying costs, and increased dealer hesitancy, leading to heightened promotional efforts.

Following the disappointing earnings report, retail sentiment on Stocktwits turned ‘bearish’, accompanied by an ‘extremely high’ message volume. 

Some investors seemed encouraged by better-than-expected revenue figures. The fiscal fourth-quarter revenue fell 6.5% to $720.9 million, but exceeded the FactSet consensus of $718.7 million, largely due to stronger-than-anticipated motorhome sales, which offset misses in towables and marine segments.

Looking ahead, Winnebago projected adjusted earnings per share for fiscal 2025 in the range of $3.00 to $4.50, falling short of the current FactSet consensus of $5.30. 

However, the company expects revenue to be between $2.9 billion and $3.2 billion, aligning closely with expectations of $3.19 billion.

Year-to-date, WGO stock has declined over 20%, as of last close, underperforming the S&P 500 index, which has gained 22%.

For updates and corrections email newsroom@stocktwits.com 

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