Winnebago Misses Estimates, Shares Down in Pre-Market

Winnebago Industries, the largest U.S. manufacturer of motor homes, reported a 14% decline in net income to $11.3 million, or $0.35/share, as sales increased 5% to $232m, missing analysts' average estimate of $0.49/share on sales of $246m. Its shares are down 5.5% to $28.92 in thin pre-market trading. Winnebago cited higher labor costs and negative impact from a higher mix of lower-margin motor homes. Meanwhile, Chairman and CEO Bruce Hertzke pointed to "positive reaction" to the introduction of new 2008 Winnebago and Itasca products at a recent event in Las Vegas. Better timing of the event and sales production schedule is believed to have helped boost backlog by 130% to 1,316 units as of May 26. During the quarter, Winnebago said it repurchased 627,900 shares of common stock for $20.5m, and has $1.7m remaining under its 2006 repurchase authorization. Winnebago gained 0.9% to $30.60 in normal trading Thursday and has traded between $26.90 - $36.72 over the past year.

Sources: Press release, Bloomberg, MarketWatch
Commentary: 6 RV Producers That Would Profit From Lower Gas Prices
Stocks/ETFs to watch: Winnebago Industries Inc. (WGO). Competitors: Thor Industries Inc. (THO), Fleetwood Enterprises Inc. (FLE), Monaco Coach Corp. (MNC), Coachmen Industries Inc. (COA)

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