Winnebago Net Up as Travelers Drive Rather Than Fly or Cruise

Winnebago beat Wall Street's fourth-quarter expectations. In the pandemic travelers drove recreational vehicles instead of flying or driving.
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Winnebago Industries  (WGO) - Get Report on Wednesday reported fourth-quarter earnings and revenue that beat Wall Street expectations as the recreational-vehicle titan saw strong demand during the coronavirus pandemic.

Shares of the Forest City, Iowa, company at last check were up 1.3% to $57.73. The stock finished Tuesday trading up 4.1%. And it has more than tripled off its 52-week low below $17, set in mid-March.

Sales of recreational vehicles have skyrocketed during the coronavirus outbreak as consumers look for ways to travel without flying on airplanes or boarding cruise ships.

Winnebago reported net income of $42.5 million, or $1.25 a share, up from $31.9 million, or $1.01, in the year-earlier period. The latest adjusted earnings came to $1.45 a share, beating the Zacks consensus estimate of 90 cents.

Earnings were driven by growth in operating profit, partially offset by increased interest expense, the company said.

Revenue totaled $737.8 million, up nearly 40% from a year earlier and beating Zacks' call for $699.4 million. 

Revenue for Newmar, which the company acquired in the first quarter, was $126.3 million.

Revenue excluding Newmar was $611.5 million, reflecting an organic increase of 15% from a year earlier, primarily driven by growth in the towable segment.

Winnebago had suspended most of its operations in March in response to the outbreak and gradually resumed production.

“In the face of the unprecedented impacts of the covid-19 pandemic," President and Chief Executive Michael Happe credited the company's staff, its portfolio of brands, "and our efficiency in quickly and safely resuming operations to meet tremendous consumer demand."