Winnebago Shares Jump on Q1 Earnings Beat; Target Price $96 in Best Case

Winnebago shares jumped nearly 6% in pre-market trading on Friday after the leading outdoor lifestyle product manufacturer reported better-than-expected earnings in the fiscal first quarter.

The Forest City, Lowa-based company reported quarterly adjusted earnings of $3.51​​ per share for the quarter ended in November, beating the Wall Street consensus estimates of $2.26 per share. The company said gross profit was $229.4 million, an increase of 67.4% compared to $137.0 million for the fiscal 2021 period.

Gross profit margin increased 250 basis points in the quarter to a record 19.8%, driven by operating leverage, price increases, productivity initiatives and favourable segment mix, partially offset by higher material and component costs.

The company said its revenue surged over 45% to $1.16 billion from a year ago. That was also above the analysts’ expectations of $1.01 billion. Revenues excluding the recently acquired Barletta business were $1.1 billion, representing an organic growth rate of 37.5% over the prior-year period driven by continued strong consumer demand and pricing increases related to current and anticipated higher material and component costs.

Following this, Winnebago stock jumped 5.7% to $71.72 in pre-market trading on Friday. However, it soared over 18% so far this year.

Analyst Comments

“Winnebago (WGO) reported Q1 sales and adj. EPS of $1.155B and $3.51 vs. our estimates of $1.000B and $2.38 and consensus of $1.029B and $2.34. The company’s towable segment sales increased 43.1% yr/yr while motorized segment sales increased 30.7% yr/yr. We note that WGO’s backlog remains elevated while dealer inventories remain significantly lower and retail demand remains robust,” noted Bret Jordan, equity analyst at Jefferies.

Winnebago Stock Price Forecast

Four analysts who offered stock ratings for Winnebago in the last three months forecast the average price in 12 months of $96.00 with a high forecast of $115.00 and a low forecast of $85.00.

The average price target represents a 41.45% change from the last price of $67.87. Of those four analysts, three rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

In October, Wedbush raised the target price to $94 from $89. BMO lifted the price objective to $115 from $100. CFRA upped the price target by $13 to $85. Keybanc increased the target price to $85 from $80.

However, technical analysis suggests it is good to sell now as 100-day Moving Average and 100-200-day MACD Oscillator signals a selling opportunity.

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