Winnebago beats EPS forecast but revenue drops 17% and misses estimates

what happened

Winnebago Industries posted adjusted earnings of 49 cents a share for the three months to August 31, down from 71 cents a year earlier, according to Earnings Summary, which compiles its data from LSEG. Thirteen analysts had forecast 47 cents on average, with estimates ranging from 22 to 55 cents.

Revenue slid 17% to $645.10 million, short of the $660.08 million analysts had expected. On a reported basis, earnings came to 34 cents per share, and net income reached $9.7 million. The stock fell 12.1% during the quarter and 42.8% since the start of the year.

Analyst estimates moved lower over the same period: the average earnings forecast dropped about 6.2% over three months, and two estimates were cut in the last 30 days. The average rating is hold, with five buy ratings, nine holds and no sells, while the median 12-month price target of $33.00 sits about 29.8% above the last close of $23.17.

why it matters

A profit beat alongside falling revenue and lower forecasts typically pushes investors to look past the headline EPS figure and into sales and margins. For a stock already well down this year, that mix of results is a key factor in how the shares are read going forward.

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