By Dhirendra Tripathi
Investing.com – Winnebago stock (NYSE:WGO) jumped nearly 4% Friday after the company’s first-quarter earnings came in well ahead of estimates and sales topped expectations, too.
The company grew its presence in the recreational vehicle market, claiming to have closed October with 13.3% share, an increase of 1.3 points.
Volume growth, a result of people returning to lead normal lives and break free after a year of the pandemic, as well as price hikes the company took to pass on rise in cost of production drove earnings higher.
The company expanded its margins by 2.5 percentage points to 19.8% in the quarter ended November 27.
According to statistics put out by the company, 56 million households camped in the year through November, a 16% increase.
The company said it will continue to capitalize on the secular demand shift of consumers embracing the outdoor lifestyle.
Revenue from Barletta Pontoon Boats, a premium pontoon boat manufacturer Winnebago completed the purchase of in August, also helped revenue gains.
Adjusted earnings per diluted share was $3.51, up 97% year-on-year, and easily above the estimate of $2.36.
Revenue for the first quarter ended November 27 was a record $1.2 billion, up 46% to top the analysts’ estimate of $1.04 billion. Towable segment revenue rose 43% while the motorhome business recorded 31% higher sales.