If Winnebago’s Up, Consumers are Confident

  Print Print

June 28, 2014 by   Comments Off on 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.

For the full story click here.

[Slashdot] [Digg] [Reddit] [Facebook] [Google] [StumbleUpon]


Comments are closed.