Winnebago Stock Climbs Despite Gloomy Forecast

Despite a year-over-year sales decline of 12%, reaching $620.2 million, Winnebago Industries experienced a significant stock price increase, nearly 7%, following the release of their quarterly financial results.

According to an article by Investopedia, the company’s adjusted earnings per share (EPS) for the fiscal second quarter exceeded analyst projections, reporting 19 cents compared to the expected 17 cents.

Winnebago’s GAAP net loss per share was recorded at 2 cents, a marked improvement from the previous year’s 43-cent loss and also better than the anticipated 11-cent loss.

However, the recreational vehicle manufacturer revised its fiscal 2025 financial forecasts downward, now projecting adjusted EPS between $2.75 and $3.75, and sales between $2.8 billion and $3 billion.

This adjusted outlook reflects the company’s response to prevailing “macro-economic and sector challenges,” including persistent interest rates, fluctuating consumer confidence, and dealers reducing inventory, particularly in motorhome and marine sectors, according to CEO Michael Happe.

Even with the daily stock increase, Winnebago’s stock value is still down by roughly 50% over the last 12 months.

This update on Winnebago’s stock price highlights the sensitivity of the market to macroeconomic factors. 

The cut in Winnebago’s outlook signals potential broader slowdowns in RV sales, due to the factors listed by Winnebago’s CEO. 

This impacts not only manufacturers, but also dealers, parts suppliers, and associated tourism industries.