Winnebago Misses Q2 Expectations, Shares Tumble

Shares of

dropped more than 6% in pre-market trading after the company reported weaker-than-expected results for the second quarter. The Forest City, Iowa-based company posted quarterly earnings of $8.1 million, or $0.30 per share, compared to $9.6 million, or $0.35 per share, in the year-ago period. Its revenue climbed 2.5% to $234.5 million. However, analysts were projecting a profit of $0.38 per share on revenue of $253.3 million. Motorhome revenue gained 2.4%, while towable revenue surged 11.8%. Motorized unit bookings rose 59%, while motorhome retail registrations climbed 18%. Operating expenses climbed 40% to $12.3 million in the quarter, while operating income fell to $11.9 million from $14.0 million. Chairman, CEO and President Randy Potts said, "During the second quarter, we grew revenues and improved gross profit margin despite continuing to work through the labor-related constraints and challenges we saw last quarter. We also incurred higher operating expenses, in large part attributable to the commencement of our new ERP system and strategic sourcing projects, which we believe will improve Winnebago's efficiency and profitability once complete." Winnebago shares fell 6.47% to $22.25 in pre-market trading.