Winnebago Industries Stock Falls After Q1 Earnings Miss Amid Challenging Marine Operating Environment

Winnebago Industries, Inc. (NYSE: WGO ) shares are trading lower in the premarket session on Friday.

The company reported first-quarter adjusted loss per share of 3 cents, missing the analyst consensus estimate for EPS of 20 cents. Quarterly sales were $625.60 million (down 18%), which was missing the analyst consensus estimate of $672.232 million.

Revenues fell amid lower unit volume and a reduced average selling price per unit related to product mix.

Gross profit was $76.8 million, a decrease of 33.7% year over year. Gross margin decreased 290 basis points in the quarter to 12.3%, reflecting deleverage, higher warranty experience compared to the prior year and product mix, partially offset by operational efficiencies.

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“As expected, the RV and marine operating environment remained challenging in the first quarter, marked by subdued consumer demand and a cautious dealer network reluctant to make significant commitments on new orders ahead of the historically slow winter season,” said Michael Happe, President and Chief Executive Officer of Winnebago Industries.

Operating loss was $0.9 million, compared to operating income of $39.1 million in the first quarter of last year. Consolidated Adjusted EBITDA was $14.4 million, a decrease of 73.4% year over year.

As of November 30, the company had total outstanding debt of $696.9 million. Cash flow used in operations was $16.7 million in the first quarter.

On December 18, the company approved a quarterly cash dividend of $0.34 per share payable on January 29, 2025, to common stockholders of record at the close of business on January 15, 2025.

Winnebago Industries executed share repurchases of $30.0 million during the first quarter.

Outlook: Winnebago Industries reaffirmed its expectation for FY25 revenues to be between $2.9 billion and $3.2 billion, compared to the $2.99 billion estimate.

The company narrowed its fiscal 2025 adjusted EPS outlook while leaving the midpoint unchanged. It sees adjusted EPS of $3.10 to $4.40, compared to the prior range of $3.00 to $4.50 and against the $3.39 estimate.

“Although the first half of the fiscal year comes with its typical seasonality and challenging market conditions, we are prepared to capitalize on the anticipated rise in demand as the RV and marine markets enter the spring selling season,” Happe adds.

Price Action: WGO shares are trading lower by 3.89% to $49.91 premarket at last check Friday.