Shares of Winnebago Industries Inc. WGO were driven 3.4% lower in premarket trading Wednesday, after the recreational vehicle maker reported fiscal third-quarter revenue that fell short of expectations, amid a big miss in its motorhome business. Net income for the quarter to May 27 fell to $59.1 million, or $1.71 a share, from $117.2 million, or $3.57 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.13 was well above the FactSet consensus of $1.78. Revenue dropped 38.2% to $900.8 million due to lower unit sales and higher discounts, to miss the FactSet consensus of $977.1 million. Towable revenue tumbled 52.3% to $384.1 million, just shy of the FactSet consensus of $386.5 million; Motorhome revenue fell 27.5% to $374.4 million, well below expectations of $457.7 million; while Marine revenue rose 1.9% to $129.0 million but missed expectations of $134.8 million. Cost of sales fell less than revenue, as gross margin contracted to 16.8% from 18.7%. Winnebago’s stock has rallied 21.8% year to date through Tuesday, while the S&P 500 SPX has advanced 14.3%.
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