Shares of Winnebago Industries Inc.
WGO,
were indicated down nearly 2% in premarket trading Wednesday, after the recreational vehicle maker beat fiscal fourth-quarter profit expectations but missed on revenue and expects continued pressure on the retail market. Net income for the quarter to Aug. 26 fell to $43.8 million, or $1.28 a share, from $82.6 million, or $2.61 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.59 beat the FactSet consensus of $1.36. Revenue dropped 34.6% to $771.0 million, below the FactSet consensus of $784.3 million, as towable revenue beat expectations while motorhome and marine revenue missed. Chief Executive Michael Happe said the consumer market “continues to be challenged” and the fourth-quarter results reflect a “stubborn retail environment.” For fiscal 2024, Happe expects the “he continued pressure of current retail market dynamics, coupled with dealer selectiveness to take on additional inventory amidst retail challenges, through the first half of the fiscal year.” However, consumer demand is expected to stabilize in the second half of the year. The stock has shed 12.2% over the past three months through Tuesday while the S&P 500
SPX,
has lost 4%.
