Winnebago Industries swings to a net loss in Q3 as COVID-19 disrupts the supply chain

Winnebago Industries (NYSE: WGO) released its quarterly financial results on Wednesday that topped analysts’ estimates by significant margins. The company attributed its hawkish performance in the fiscal third quarter to unexpected growth in motorhome sales.

Shares of the company remained were reported less than 1% down in premarket trading on Wednesday. At £56.18 per share, Winnebago Industries is roughly 30% up year to date in the stock market after recovering from a low of £16.45 per share in March. Learn more about how to invest in the stock market.

Winnebago’s Q3 financial results versus analysts’ estimates

The American manufacturer of motorhomes recorded a net loss of £9.92 million that translates to 21.60 pence per share in the quarter that ended on 30^th May. In the same quarter last year, Winnebago had reported a net income of £28.95 million or 91 pence per share. The company attributed the decline in net income to the Coronavirus pandemic that disrupted its supply chain and fuelled delays in manufacturing.

Excluding one-time items, Winnebago posted 20.79 pence of adjusted loss per share in the third quarter. According to FactSet, analysts had anticipated the company to see a much wider 36 pence of loss per share in Q3. U.S. Vice President Mike Pence lauded Winnebago for its rebound after COVID-19 on Tuesday.

On the revenue front, the Forest City-headquartered company printed £321.88 million that represents a massive 23.9% growth versus the comparable quarter of last year. As per FactSet, experts had forecast the company to generate a significantly lower £276.78 million in revenue in the recent quarter.

Winnebago’s revenue from motorhome climbs by 27.1%

At £151.05 million, Winnebago’s towable revenue came in 45.5% lower on Wednesday but topped the analysts’ expectations of £144.03 million in the third quarter. This decline was offset by a 27.1% growth in revenue from motorhome to £162.82 million versus the experts’ anticipation of a 5% decline to £121.71 million in Q3.

As of 30^th May, Winnebago Industries had £371.86 million of total outstanding debt and £239.75 million of working capital. In fiscal 2020, the company registered a £63.66 million year over year increase in its cash flow from operations in the first nine months to £129.87 million. Winnebago’s directors announced 8.80 pence a share of quarterly cash dividend in May.

At the time of writing, the £1.91 billion company has a price to earnings ratio of 22.92.