Bloomberg News

Winnebago Surges After Quarterly Profit Beats Estimates

December 20, 2012

Winnebago Industries Inc. (WGO:US), a maker of motor homes, climbed to its highest price in almost two years after reporting quarterly financial results that exceeded analysts’ estimates.

Shares gained 16 percent to $16.33 in New York, the highest closing price since February 2011. It was the biggest one-day increase since March 15.

The company, based in Forest City, Iowa, reported that net income for the first quarter of its 2013 fiscal year totaled $7.4 million, or 26 cents a share, from $1 million, or 4 cents, a year earlier. The average estimate of four analysts surveyed by Bloomberg was for a per-share profit of 10 cents. Revenue for the 14-week quarter ended Nov. 26 increased to $193.6 million compared with $131.8 million for the year-earlier 13-week quarter.

Besides the additional week, Winnebago had increased production during the quarter “due to robust demand,” according to a statement on the company’s website. Sales of recreational vehicles are monitored as a sign of an improving economy because motor homes and travel trailers are discretionary purchases that consumers defer during a slump.

Winnebago shares have more than doubled this year.

To contact the reporter on this story: Bill Koenig in Southfield, Michigan, at wkoenig@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net


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Companies Mentioned

  • WGO
    (Winnebago Industries Inc)
    • $25.11 USD
    • -0.14
    • -0.56%
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