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The Key Takeaways
- Winnebago Industries has reported an unexpected first quarter loss. Revenues also missed forecasts due to a decline in consumer demand.
- The RV producer posted a share loss of $.18 while analysts expected to see a profit $0.04. Revenue fell by 18% to $625.6million.
- Winnebago's CEO said the market for its vehicles "remained challenging."
Winnebago Industries, a recreational vehicle (RV), posted an unexpected quarterly loss on Friday due to sluggish consumer demand and cautious dealerships.
Visible Alpha surveyed analysts who expected a profit per share of $0.04. Winnebago posted a loss per share of adjusted $0.03 compared to an expected profit per share of adjusted $0.17. The revenue fell 18% to $625.6 millions, which was also below forecasts.
Motorhome RVs sales fell 19%, to $271.7 Million. Towable RVs sales dropped 23%. Marine vehicle sales increased by almost 4%, to $90.5 Million.
CEO Says Dealers Cautious Ahead of 'Historically Slow Winter Season'
Michael Happe is the CEO at Chief Executive (CEO). “The RV and marine operating environment remained challenging.” Happe also noted that dealers, along with buyers who are hesitant, have been “reluctant to make significant commitments on new orders ahead of the historically slow winter season.” Happe has warned that this quarter’s results are likely to be disappointing. “likely to remain challenged,” Although Winnebago is confident of its position and growth potential, it remains committed to the company’s strong brand.
The company’s earnings per share for the full year are now expected to be between $2.50 and $3.80. This is a reduction from the previous outlook of $2.40 – $3.90. Adjusted EPS will range from $3.10 – $4.40 compared to the $3.00 – $4.50. The company reaffirmed the previous revenue forecast of $2.9 to $3.2 billion.
Winnebago Industries’ shares dropped about 1% after the opening bell. The shares have dropped by nearly 30% in value since the beginning of this year.
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