Winnebago Industries (WGO) Stock Continued Gains Following Earnings Beat

NEW YORK (TheStreet) -- Winnebago Industries (WGO) shares closed trading up 8.37% to $24.46 on heavy trading volume as the company continued to advance from its strong quarterly results.

The stock closed trading on more than four times its daily average volume after it reported earnings of $11.5 million, or 44 cents per share on an adjusted basis, beating analysts' earnings expectations of 42 cents per share by one cent.

Revenue for the period increased 7.6% year over year to $266.5 million, also topping analysts' $261.38 million guidance.

The company's revenue beat was driven by an 11.4% year over year increase in motorhome shipments.

Americans are expected to purchase about 380,000 recreational vehicles this year, a 6.5% increase over the previous year and the most since 2007, according to Reuters.

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 several positive factors, 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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