Recreational Vehicle (RV) Manufacturer Winnebago Industries (NYSE: WGO) Shares have been sold with the benchmark index and sales continue despite the return of the market. Camper and the iconic maker of RVs have enjoyed a resurgence of demand due to the epidemic lockdown that has allowed consumers to discover outside leisure and lifestyle. The advent of remote work has inspired many workers to convert their RVs into mobile offices as they keep busy through virtual meetings. The new natural elastic office continues to inspire a new generation of flexible staff. As fuel prices rise, disruptions in the supply chain and rising interest rates can hinder near-term growth. The company is still growing in double digit clips while its share price is selling at 4.3X earnings. Wise investors looking for a valuable game in the RV segment can see the opportunistic pullback in Winnebago’s shares.
Q2 Financial 2022 Earnings Release
On March 23, 2022, Winnebago released its financial second-quarter 2022 results for the quarter ending February 2022. The company gained $ 3.14 per share Revenue rose 38.7% year-on-year (YoY) to 1.16 billion, with analysts estimating 1.1 billion. The cost of telegraphing to offset supply chain constraints and production inefficiency was 18.1% of the total profit margin for pricing prior to input inflation. The company continues to gain RV market share up to 14.3%, up 100 bps. Winnebago CEO Michael Happ commented, “… our second-quarter performance and recent RV and record sales results in the maritime trade further legitimize consumers’ embrace of the outdoor lifestyle. Winnebago Industries continues to capitalize on that sustainable demand – gaining market share across our segment is a testament to the deep friendship for our brands, which customers acknowledge has been distinguished by our continued focus on quality, service and innovation. As of January 2022, our RV retail market share is trailing 14.3% on a three-month basis, reflecting a 1.0 share point increase over the same period last year.
Conference Call Takeaways
CEO Happ stressed that consumer demand is still strong and robust and outlines specific areas of growth. The Twelve RV segment grew 47.2% YoY to $ 646.6 million, driven by 13.2% unit growth as well as price increases. The motorhome segment grew 9.1% YoY to 417.6 million, but EBITDA declined (-9.6%) due to production inefficiency due to supply chain disruption. Its marine portfolio was $ 97.3 million with a E 13 million adjusted EBITDA, $ 11.9 million more than the previous year with a backlog of $ 277.9 million. The Barletta Pontoon boat business was acquired last August and helped it gain 9% as a result of gaining market share. CEO Hap says the Winnebago brand clearly recognizes the difference with its products. “This difference is the result of our relentless focus on quality, service and the golden thread of innovation,” he said. Strong consumer demand is a strong undercurrent that we believe our company will continue to grow in the current fiscal year and beyond. ” He noted that in both 2020 and 2021, 51% of new RV-ers started the effort mainly due to COVID. Winnebago has benefited and is confident that these interest trends are closing in as customers continue their love for the outside world. A survey shows a 16% YoY increase in family camping as of November 2021. He also mentioned that flexible work has given new RV-ers 25% of millennials and 27% Gen-X-ers claim that they use their RVs as a place to be while having a reason to buy one.
WGO opportunistic price level
Using rifle charts in weekly and daily time frames provides a detailed view of the landscape for WGO stock. The weekly rifle chart created a reversal pop breakdown that was close to $ 51.79. Fibonacci (Five) layer. Weekly 200-Period Moving Average (MA) support sits at $ 51.59. The weekly 5-period MA continued to decline at $ 57.92, followed by the 15-period MA at .7 64.79 and the 50-period MA at .4 69.47. Weekly lower Bollinger Bands (BBs) sit at $ 48.41. The Daily Rifle chart created a reversal pop breakdown with the 5-period MA resistance falling to $ 54.30 and the 15-period MA falling to $ 57.06. Daily 50-period MA is reading at $ 61.98. Daily Stochastic is trying to make a small puppy in the 20-band and can trigger daily Lower Market Structure (MSL) Buy Signals at ব্র 56.94 at Breakout. Prudent investors can see favorable 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 $ 36.61 fib levels. Upside trajectories range from $ 60.70 fib level to $ 71.29 fib level.