Winnebago 1Q profit grows on stronger RV demand
FOREST CITY, Iowa (AP) — Winnebago said Thursday that its net income grew more than sevenfold in its fiscal first quarter thanks to an extra week in the period and improving demand for its recreational vehicles.
The Forest City, Iowa, company's performance handily topped analysts' expectations and its stock climbed to its highest point in more than a year.
CEO Randy Potts said in a statement that Winnebago is seeing increased demand during what is typically a seasonally slower time for its business, and he said the company is offering fewer sales incentives.
Winnebago Industries Inc. earned $7.4 million, or 26 cents per share, for the period ended Dec. 1. A year ago it made $1 million, or 4 cents per share.
Analysts forecast earnings of 9 cents per share, according to FactSet.
Revenue came in at $193.6 million, up 46.8 percent from last year.
Winnebago shares rose $1.91, or 13.5 percent, to $15.99 in midday trading. Earlier in the session the stock reached $16.24, its highest level since February 2011.