Analytical market review: Winnebago Industries, Inc. (NYSE: WGO)

On Friday, Winnebago Industries, Inc. (NYSE: WGO) stock price moved down at -0.93%. Its total market capitalization is $2.11B. Its day lowest price was $61.25 and it hit its day highest price at $63.7. The stock recent volume is 401410 shares in comparison to its average trading volume of 756355 shares. Looking at the stock’s price level on the past 52-week graph, WGO recorded a 52-week high of $72.65 and its 52-week low of $16.94.

Winnebago Industries, Inc. (WGO) recently stated financial results for the Company’s third quarter Fiscal 2020 ended May 30, 2020. The Company’s results were influenced by the unprecedented series of events related to the COVID-19 pandemic which included the suspension of manufacturing operations as well as disruptions across its dealer network, supply chain and end consumers during most of the quarter. In response, Winnebago Industries took immediate and decisive actions to keep employees safe, control costs and maintain its financial strength and flexibility. The Company’s financial position remains strong primarily Because of its variable cost structure, entering the crisis with a very healthy cash balance, and ample additional capacity under its revolving credit facility if needed.  Winnebago Industries is continuing to adapt to this challenging period by prioritizing decisions that are in the best interests of both its employees’ health and its long-term business prospects.

Third Quarter Fiscal 2020 Results

Revenues for the Fiscal 2020 third quarter ended May 30, 2020, were $402.5M, a decrease of 23.9% contrast to $528.9M for the Fiscal 2019 period. Revenues for Newmar, which was purchased in the first quarter of Fiscal 2020, were $88.0M.  Revenues not including Newmar were $314.5M, a decrease of 40.5%.  Gross profit was $32.0M contrast to $86.6M for the Fiscal 2019 period.  Gross profit margin reduced 840 basis points in the quarter, primarily driven by deleverage Because of the important revenue decline and an unfavorable mix as Towable’s revenue, as a percent of total revenue, was lower contrast to the same period a year ago.  Operating income was an $8.2M loss for the quarter, contrast to operating income of $49.0M in the third quarter of last year.  Fiscal 2020 third quarter net income was a loss of $12.4M, contrast to net income of $36.2M in the same period last year.  Net loss per diluted share was $(0.37), contrast to earnings per diluted share of $1.14 in the same period last year. Consolidated adjusted net loss per diluted share was $(0.26) for the third quarter, not including costs totaling $3.5M, or $0.11 per diluted share, after tax, driven by the non-cash portion of interest expense and restructuring charges.  Consolidated Adjusted EBITDA was $4.1M for the quarter, contrast to $55.9M last year, a decrease of 92.7%.

President and Chief Executive Officer Michael Happe commented, “Our third fiscal quarter was a uniquely challenging time for Winnebago Industries, as it spanned the most intense portion of the unpredictable COVID-19 pandemic in the U.S.  While the pandemic has importantly changed how we conduct business on a day-to-day basis, I couldn’t be prouder of how our teams have worked collaboratively to respond to this tremendous test.  We would like to especially recognize and thank the first responders, health care professionals, and public health officials across the country and specifically in the communities in which we have a physical presence.  As we ramp up operations across our portfolio, I have been inspired by the efforts our team members have put forth to ensure our manufacturing, warehouse, service, office, and remote environments are as safe as possible.  Despite the COVID-19 disruption and ongoing related obstacles, we have not lost our focus on quality, innovation and consumer service. We have grown market share, strengthened dealer and supplier relationships, and maintained key investments in initiatives critical to our future.  Our portfolio of premium outdoor brands continues to perform well and be desired by channel partners and end consumers alike.  Winnebago Industries’ North American RV retail market share was 11.7% on a trailing three-month basis through April, 2020, up 1.7 share points (up 1.2 share points on an organic basis) over the same period last year.  I want to thank all of our Winnebago Industries employees for their commitment and cooperation as we continue the process of returning to work in a thoughtful and safe manner. We are especially grateful for the support of our dealer network as they also guided their teams through these truly exclusive times with great passion and fortitude, always serving our collective end consumers during a time of extraordinary challenges.”

Company’s performance for the week was -0.06%, -6.19% for month and YTD performance remained – 16.99%. The price moved ahead of -2.38% from the mean of 20 days, -0.11% from mean of 50 days SMA and performed 23.79% from mean of 200 days price.

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