What Happened?
Shares of RV Manufacturer Winnebago (NYSE: WGO)
fell 6% in the morning session after the company reported fiscal third-quarter 2025 sales that missed analysts' expectations.
Revenue of $775.1 million was down 1.4% year-over-year and slightly missed forecasts. On the other hand, the company posted adjusted earnings per share of $0.81, narrowly surpassing the consensus estimate of $0.79.
The results come amid what CEO Michael Happe described as a "challenging economic environment" with soft retail demand. Despite the headwinds, the company saw unit volume growth in its Towable RV and Marine segments. However, Winnebago did lower its full-year guidance, now expecting adjusted EPS between $1.20 and $1.70, citing the uncertain economic climate.
The weak stock reaction suggests investors are wary, given the cautious outlook.
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What The Market Is Telling Us
Winnebago’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock dropped 5.1% on the news that the company reported underwhelming preliminary first-quarter (fiscal Q3) 2025 results, with sales and EPS guidance below Wall Street's estimates. Management cited some of the issues faced during the quarter adding "What began as an encouraging selling season in March was hampered by growing macroeconomic uncertainty, resulting in worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter.".
Winnebago is down 38.9% since the beginning of the year, and at $29.41 per share, it is trading 54.8% below its 52-week high of $65.10 from November 2024. Investors who bought $1,000 worth of Winnebago’s shares 5 years ago would now be looking at an investment worth $429.85.
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