Why Winnebago Industries Stock Jumped More Than 25% Today
Key Points
Winnebago Industries reported fourth-quarter earnings of $0.71 per share, demolishing analyst expectations of $0.51 per share.
The strong results mark a welcome change after Winnebago missed earnings targets four times in its previous six reports.
CEO Michael Happe acknowledged that while tariffs are unwelcome, the company has gotten better at managing them.
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Shares of Winnebago Industries (NYSE: WGO) took a victory lap on Wednesday, rising as much as 29% thanks to a strong earnings report. By 12:30 p.m. ET, the motor home manufacturer had slowed down slightly to a 25.7% gain.
Winnebago beat the Street by a country mile
In the fourth quarter of fiscal year 2025, Winnebago's net sales rose 7.8% year over year to $777 million. Adjusted earnings jumped 154% higher, landing at $0.71 per diluted share. Your average analyst firm would have settled for earnings near $0.51 per share on revenues in the neighborhood of $725 million.
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Watch out for potholes in the road ahead
Winnebago's results have been hit-and-miss in recent years, with four earnings misses and five negative revenue surprises in the last six reports. Today's strong showing was a welcome break from these disappointing trends. That said, Winnebago shares still trade 39% below their 52-week highs, and that's after accounting for Wednesday's sudden surge.
The company isn't out of the woods yet, either. Winnebago's profit margins are paper-thin, and the company is seeking ways to avoid costly tariff charges. It's unclear exactly how heavy that burden is, but Winnebago's management looks prepared to deal with the macroeconomic pressure on its RV-component supply chain.
"We're never comfortable with tariffs, but unfortunately, we've gotten better at managing it, and we just have to do that every day now as part of our business model," CEO Michael Happe said on the earnings call.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Winnebago Industries. The Motley Fool has a disclosure policy.
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