Led by higher mobile home deliveries, Winnebago Industries (NYSE:WGO) traded up more than 8% Thursday after revealing a nearly tripled first-quarter profit.
The Forest City, Iowa-based company posted net income of $3.8 million, or 13 cents a share, compared with a loss of $1.3 million, or 5 cents a share, in the same quarter last year, beating the Street’s view of 2 cents.
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Earnings were helped by the sale of an idled assembly facility in Charles City, Iowa, which was sold to CGS Tires US, and generated some $3.7 million in net proceeds.
Revenue for the motor home manufacturer was $123.7 million, up 52.7% from $81 million a year ago, trumping average analyst estimates polled by Thomson Reuters of $96.89 million.
In a statement, Winnebago said the quarterly results were fueled by higher motor-home deliveries and higher average selling prices due to a shift to more higher-priced products, more fixed-cost absorption and improved labor efficiencies as a result of improved production levels.
“We are pleased to see increases in our delivery volumes, as well as strength in our Class A products in the marketplace, with gains in both Class A gas and diesel market share,” said Winnebago CEO Bob Olson.
Looking ahead to the slower winter months, however, the company said it remains cautious.