Analyst Sees Revenue Growth For RV Industry
HARTFORD, Conn. (AP) ¿ Shares of Winnebago Industries Inc. and Thor Industries Inc. rose Friday as an analyst said improving sales trends for the two recreational vehicle companies will continue through next year.
Analyst Gregory R. Badishkanian of Citi Research said in a client note that, according to discussions with industry representatives at a recent RV trade show and with dealers later, inventories are being replenished and unfilled orders should fuel growth over the next few quarters.
Although credit is still tight, he said it has "modestly eased" each month year-to-date.
However, manufacturers are conservative in their outlook, Badishkanian said, and supply shortages, particularly with motor home chassis, will temper sales growth.Thor Industries, based in Jackson Center, Ohio, said Nov. 30 that profit more than quadrupled in its fiscal first quarter, lifted by cost-cutting and a modest increase in RV sales. Winnebago, however, said in mid-October its fourth-quarter loss widened as the company based in Forest City, Iowa, struggled with falling deliveries, promotional pricing and customers' continuing struggles in getting financing. But the nation's top motor home maker said dealer inventories are very close to reaching bottom and it expects dealers will soon need to start replenishing stock. Shares of Thor rose 28 cents to $29.28 in midday trading. Winnebago shares increased 4 cents to $10.70.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV