Winnebago Industries (NYSE:WGO) Shares Gap Up After Strong Earnings

Key Points

• Winnebago Industries shares gapped up to $36.31 after reporting earnings of $0.71 per share, surpassing analysts' expectations of $0.58.
• The company increased its quarterly dividend from $0.34 to $0.35, offering an annualized dividend yield of 3.5%.
• Stock analysts have mixed opinions, with six rating it as a Buy and a recent average price target set at $40.78.

Winnebago Industries, Inc. (NYSE:WGO - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $31.62, but opened at $36.31. Winnebago Industries shares last traded at $39.07, with a volume of 691,433 shares traded.

The RV manufacturer reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.13. Winnebago Industries had a positive return on equity of 2.86% and a negative net margin of 0.62%.The business had revenue of $777.30 million during the quarter, compared to analyst estimates of $724.89 million. During the same quarter last year, the firm earned $0.28 earnings per share. The company's revenue for the quarter was up 7.8% compared to the same quarter last year. Winnebago Industries has set its FY 2026 guidance at 2.000-2.700 EPS.

Winnebago Industries Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Wednesday, September 10th were paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.5%. This is an increase from Winnebago Industries's previous quarterly dividend of $0.34. The ex-dividend date was Wednesday, September 10th. Winnebago Industries's payout ratio is -237.29%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Robert W. Baird lowered their target price on Winnebago Industries from $38.00 to $35.00 and set a "neutral" rating for the company in a research note on Thursday, June 26th. BMO Capital Markets lowered their target price on Winnebago Industries from $50.00 to $42.00 and set an "outperform" rating for the company in a research note on Thursday, June 26th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Winnebago Industries in a research note on Wednesday, October 8th. Citigroup raised their price objective on Winnebago Industries from $36.00 to $41.00 and gave the company a "buy" rating in a research note on Friday, September 12th. Finally, DA Davidson raised their price objective on Winnebago Industries from $26.00 to $32.00 and gave the company a "neutral" rating in a research note on Tuesday, September 30th. Six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Winnebago Industries currently has an average rating of "Hold" and an average price target of $40.78.

Institutional Trading of Winnebago Industries

Several hedge funds have recently made changes to their positions in WGO. RWWM Inc. acquired a new stake in Winnebago Industries in the 2nd quarter valued at approximately $8,400,000. Zweig DiMenna Associates LLC acquired a new position in shares of Winnebago Industries during the 1st quarter valued at $6,260,000. Maple Rock Capital Partners Inc. increased its position in shares of Winnebago Industries by 83.7% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 322,099 shares of the RV manufacturer's stock valued at $9,341,000 after purchasing an additional 146,789 shares during the period. Gendell Jeffrey L acquired a new position in shares of Winnebago Industries during the 2nd quarter valued at $4,220,000. Finally, Marshall Wace LLP increased its position in shares of Winnebago Industries by 142.3% during the 2nd quarter. Marshall Wace LLP now owns 233,505 shares of the RV manufacturer's stock valued at $6,772,000 after purchasing an additional 137,120 shares during the period.

Winnebago Industries Stock Up 25.2%

The company has a current ratio of 2.41, a quick ratio of 0.89 and a debt-to-equity ratio of 0.44. The firm has a market capitalization of $1.11 billion, a price-to-earnings ratio of -67.08 and a beta of 1.14. The stock has a fifty day moving average of $33.79 and a 200-day moving average of $32.68.

About Winnebago Industries

Winnebago Industries, Inc manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates through three segments: Towable RV, Motorhome RV, and Marine. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names.

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