Recreational vehicle (RV) manufacturer Winnebago Industries (NYSE:WHO) shares have sold off against the benchmark indices and continue to sell despite the market recovery. The iconic maker of motorhomes and motorhomes has enjoyed a resurgence in demand fueled by pandemic lockdowns that have seen consumers discover outdoor leisure and lifestyles. The advent of remote working has also inspired many employees to convert their RVs into mobile offices, while maintaining their engagement through virtual meetings. The new normal continues to inspire a new generation of resilient office and flex workers. While rising fuel prices, supply chain disruptions and interest rate hikes could hamper short-term growth. The company is still growing at a double-digit clip, with its shares selling for a bargain of 4.3x earnings. Cautious investors looking for a value play in the RV segment can look forward to opportunistic pullbacks in Winnebago stocks.Contributor of Depositphotos.com/Depositphotos.com – MarketBeat
Q2 Fiscal 2022 Revenue Release
On March 23, 2022, Winnebago posted its second quarter 2022 results for the quarter ended February 2022. The company reported earnings of $3.14 per share, better than consensus analyst estimates of $2.91 per share with $0.23 per share. Revenues grew 38.7% year-over-year (year-on-year) to $1.16 billion, better than consensus analyst estimates of $1.1 billion. Gross profit margin was 18.1% thanks to pricing that exceeded telegraphic price inflation to offset supply chain constraints and manufacturing inefficiencies. The company continued to gain market share for RVs by 100 basis points to 14.3%. Winnebago CEO Michael Happe commented, “…Our second quarter performance and record sales results at recent RV and Marine shows confirm the consumer’s embrace of the great outdoors. Winnebago Industries is capitalizing on that continued demand – market share gains in our segments are evidence of a deep affinity with our brands, which consumers recognize as differentiated through our continued focus on quality, service and innovation. As of January 2022, our RV market share is 14.3% on a quarterly basis, reflecting an increase of 1.0 percentage point over the same period last year.”
Takeaway for conference calls
CEO Happ emphasized that consumer demand is still strong and robust and outlined specific growth areas. The towable RV segment grew 47.2% year over year to $646.6 million, driven by price increases in addition to growth of 13.2% per unit. The RV segment grew 9.1% year-over-year to 417.6 million, but EBITDA declined (-9.6%) due to manufacturing inefficiencies due to supply chain disruptions. Marine segment revenues were $97.3 million with adjusted EBITDA of $13 million, up $11.9 million from last year behind $277.9 million. The Barletta Pontoon Boat business was acquired last August and helped generate 9% of the growth as it gained market share. CEO Happe states that the Winnebago brand clearly recognizes the differentiation with its products. He stated: This differentiation is the result of our relentless focus on our golden threads of quality, service and innovation. Robust consumer demand is a powerful undercurrent that we believe will continue to drive the growth of our business through the current fiscal year and beyond.” He noted that 51% of new RVers started the business in both 2020 and 2021, primarily due to COVID reasons. Winnebago has capitalized on this and believes these interest trends will become entrenched as customers continue to pursue their love of the great outdoors. A study showed a 16% increase in households camping through November 2021. He also pointed out that flexible work drives new RVers, as 25% of Millennials and 27% of Gen-Xers claim that they use their RV as a place to continue working as a reason to buy one.
WHO Opportunistic Price Levels
Using the gun charts on the weekly and daily timeframes provides a broader view of the landscape for WHO stocks. The weekly gun chart formed an inverted breakout of the pups that bottomed out near the Fibonacci (fib) level of $51.79. The weekly 200-period moving average (MA) support is at $51.59. The weekly 5-period MA continues to fall at $57.92, followed by the 15-period MA at $64.79 and the 50-period MA at $69.47. The weekly lower Bollinger Bands (BBs) are at $48.41. The daily gun chart also reversed the breakdown of the pups with a declining 5-period MA resistance at $54.30 followed by the 15-period MA at $57.06. The 50-period daily MA is down to $61.98. The daily stochastic tries to form a mini pup on the 20 band and can trigger the buy signal of the daily market structure (MSL) when it breaks down to $56.94. Cautious investors can watch for opportunistic pullbacks at the $51.79 fib, $50.52, $49.16 fib, $47.85 fib, $45.56, $42.57, $41.25 fib, $38 .88 fib and the $36.61 fib level. Upward trajectories range from the $60.70 fib level to the $71.29 fib level.
This post Winnebago Stock is ready to jump ahead was original published at “https://www.entrepreneur.com/article/423795”