Published June 14, 2012
Recreational vehicle manufacturer Winnebago (WGO) reported a third-quarter profit slightly above Wall Street expectations on Thursday, as higher selling prices and tighter spending helped offset softer-than-expected revenues.
The Forest City, Iowa-based company said it earned $3.9 million in its latest quarter, or 13 cents a share, compared with a year-earlier $1.2 million, or 4 cents a share.
The results were a penny above average analyst estimates in a Thomson Reuters poll.
Revenue for the three months ended May 26 was up 14.9% to $155.7 million from $135.6 million a year ago, but missed the Street’s view of $164.7 million.
An uptick in wholesale deliveries of towable products and higher selling prices for all RV products helped give a boost to sales, Winnebago said. Gross margin climbed during the period, which it attributed to “better fixed cost absorption” that reflected higher production levels.
“Our business was sequentially much stronger during the third fiscal quarter and as a result, our margins have improved,” Winnebago CEO Randy Potts said in a statement. “Our RV inventory on dealers’ lots in fresh but at a conservative level, which combined with our higher order position leads us to be optimistic about the remainder of the fiscal year.”
While the company’s sales order backlog for motorized products was already strong going into its Dealer Days event held last month in Las Vegas, Winnebago said the event resulted in even more orders for towable products.
Shares of Winnebago traded up about 4% to $9.38 Thursday. Its shares are up about 27.25% so far this year.