Winnebago Industries (WGO) stock experienced a decline in early trading on Wednesday as the RV manufacturer reported revenue that fell short of Wall Street expectations. This disappointing performance comes at a time when the consumer environment has proven to be difficult.
In the fourth quarter, Winnebago reported adjusted earnings of $1.59 per share, with revenue amounting to $771 million. While these results are commendable, analysts surveyed by FactSet had predicted higher earnings of $1.36 per share on revenue of $784 million.
A year ago during the same period, the company posted earnings of $3.02 per share on revenue of $1.18 billion, indicating a notable decline.
Despite the challenges posed by the consumer market, Chief Executive Michael Happe remains optimistic about the company’s diversified portfolio and its impact on financial results for the fiscal year. He stated, “We continued to see the benefits of our diversified portfolio on our results for the fiscal year.”
As news of Winnebago’s performance spread, the company’s shares depreciated by 1.8% in premarket trading, reaching $57.57. Nevertheless, it’s important to note that the stock has managed to climb 11% since the beginning of this year.
It is worth highlighting that Winnebago is not alone in facing difficulties within the RV industry. Stagnant or rising interest rates and persistent inflation have contributed to the struggle. RV shipments for August saw a significant decline of 17% compared to the previous year, as indicated by the RV Industry Association’s August 2023 survey of manufacturers.
