If Winnebago’s Up, Consumers are Confident
Winnebago is riding the road to recovery, as more Americans are starting to feel comfortable enough with their finances to make big-ticket purchases.
Despite posting mixed fiscal third-quarter results on Thursday (June 26) that topped earnings estimates but fell short on revenue expectations, analysts said investors should focus on the U.S. RV manufacturer’s year-over-year growth.
Earnings for the three months ended in May increased more than 55% from the same period last year. And quarterly revenue, up more than 13%, was the highest since 2005—well before the recession.
“I think it’s another solid, really impressive quarter for the company,” said David Whiston, a senior equity analyst at Morningstar. “I think it just shows the recovery in motor homes is well underway after bottoming during the crisis a few years back.”
Winnebago is best known for its decked-out mini homes on wheels, which range in price from $60,000 to more than $400,000 and come equipped with everything from washing machines to flat-screen TVs to electric fireplaces.
Although it’s a small-cap stock—with a market capitalization of roughly $650 million—experts watch its performance because recreational vehicles, particularly motor homes, are closely correlated with consumer confidence.
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