Winnebago Tops Q3 Estimates

reported better-than-expected results for its fiscal third quarter. The Forest City, Iowa-based company posted quarterly net income of $11.5 million, or $0.43 per share, compared to $11.4 million, or $0.42 per share, in the year-ago period. Its revenue climbed 7.6 percent year-over-year to $266.5 million from $247.7 million. However, analysts were expecting earnings of $0.41 per share on revenue of $261.4 million. The average estimate among 10 Estimize users was for earnings of $0.42 per share and revenue of $266.69 million. Motorhome revenue rose 7.4 percent in the quarter, while motorhome unit shipment climbed 11.4 percent. Towable revenue climbed 15.9 percent, while unit shipments rose 2.1 percent. Chairman, CEO and President Randy Potts said, "Year over year, third quarter results came in quite strong, despite costs related to our two strategic initiatives, an impairment charge and the absence of the life insurance gain from last year. Our continued investment in an ERP system and strategic sourcing project are progressing on schedule, and while they have an impact on our near-term earnings, we anticipate they will benefit us in the future through improved efficiencies. We also made additional investments to expand motorized capacity through the purchase of a facility in Waverly, Iowa. In addition, to further our commitment to our towables business, we purchased our previously leased towables assembly facilities in Middlebury, Indiana." Winnebago shares rose 2.12 percent to close at $20.70 yesterday.