Winnebago shares surge more than 10% premarket after earnings beat
Shares of motor home maker Winnebago industries Inc. jumped more than 10% in premarket trade Wednesday, after the company blew past earnings estimates for its fiscal third quarter. The company said it had net income of $32.5 million, or $1.02 a share, in the quarter to May 26, up from $19.4 million, or 61 cents a share, in the year-earlier period. Revenue rose to $562.3 million from $85.5 million. The FactSet consensus was for EPS of 91 cents and revenue of $541 million. The company, which also makes boats, said net products performed well, while cost savings helped combat inflationary pressures. "Our new product launches across both segments are performing well, driving healthy backlog increases, and we remain comfortable with our current dealer inventory levels which are supported by our strong retail performance and increases in market share," Chief Executive Michael Happe said in a statement. Revenue in the company's towable segment rose 33% to $313 million, while revenue for the motorized segment rose 3.1% to $249 million. The company is expecting continued input cost pressure in the fourth quarter and will continue to work on cost savings. The company will work to integrate Chris-Craft, the marine brand that it acquired after the end of the quarter. Shares have fallen 27% in 2018, while the S&P 500 has gained 3.3%.
