NEW YORK (TheStreet) -- Winnebago Industries(WGO) - Get Report shares are falling sharply in early market trading on Thursday, down 11.18% to $20.55, following the release of the recreational vehicle manufacturer's second quarter financial results before the opening bell today.
The company's net income fell 15% driven lower by rising expenses to $8.1 million during the quarter, or 30 cents per diluted share, on revenue that rose 2.5% to $234.5 million. Analysts on average were expecting the company to report earnings of 38 cents per share on revenue of $253.4 million.
The company reported a 40% rise in operational expenses to $12.3 million, which led to the drop in profit during the period.
TheStreet Ratings team rates WINNEBAGO INDUSTRIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WINNEBAGO INDUSTRIES (WGO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: WGO Ratings Report