NEW YORK (TheStreet) -- Winnebago Industries (WGO) shares are down 9.4% to $21.61 in early market trading on Thursday after the recreation vehicle manufacturer reported its first quarter earnings results before the opening bell today.
The Forest City, IA-based company reported first quarter earnings of $9.9 million, or 37 cents per diluted share, on revenue of $224.1 million. Analysts were expecting the company to report earnings of 45 cents per share on revenue of $234.6 million.
The company said that the disappointing quarter was due to production variances that were caused by "supply chain disruptions, which impacted production and delayed the completion and shipment of motorized units." These variances led to higher labor expenses which hurt the company's bottom line 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 a number of strengths, 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. 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