Winnebago Surges After Quarterly Profit Beats Estimates
Winnebago Industries Inc. (WGO), 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.
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