© Reuters. Winnebago (WGO) falls 6% as sales plunge on weak demand for motorhomes
Winnebago Industries (NYSE:) reported weaker-than-expected sales for its fiscal third quarter to send its shares more than 6% lower in pre-market trading.
Adjusted earnings per share came in at $2.13, easily ahead of the $1.80 expected by analysts. However, FQ3 fell 38% year-over-year to $900.8 million, a significant miss relative to the expectations for revenue of $983.13M.
The bigger-than-expected decline in sales is a result of a massive underperformance of the company’s motorhome business. Adjusted EBITDA and operating revenue declined 50% and 54% YoY, respectively.
“In the midst of challenging market conditions, our team continues to successfully navigate a dynamic environment with a dual focus on taking care of our customers and operating the business with discipline, resulting in ongoing value for our shareholders,” President and Chief Executive Officer Michael Happe commented.
WGO shares are up 21.8% year-to-date through Tuesday’s close.
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