Key Takeaways

Winnebago Industries ( WGO ) shares surged close to 7% in Thursday afternoon trading after the maker of recreational vehicles posted quarterly results that topped analysts' estimates.

The Eden Prairie, Minn.-based company reported fiscal second-quarter adjusted earnings per share (EPS) of 19 cents on sales that fell 12% year-over-year to $620.2 million. Analysts polled by Visible Alpha expected 17 cents and $616.7 million, respectively.

On a GAAP basis, Winnebago registered a net loss of 2 cents per share, substantially narrowing from last year's loss of 43 cents per share and smaller than analysts' consensus projection of 11 cents per share.

Winnebago Cuts Fiscal 2025 Outlook, Citing 'Macro-Economic and Sector Challenges'

Still, Winnebago cut its forecasts for fiscal 2025 earnings and revenue. It now sees adjusted EPS of $2.75 to $3.75, down from $3.10 to $4.40, and sales of $2.8 billion to $3 billion, compared to $2.9 billion to $3.2 billion previously.

"Our full-year financial outlook for fiscal 2025 is updated to take into consideration the very dynamic environment and the macro-economic and sector challenges that our industry has been presented," CEO Michael Happe said. "Among these are stubborn interest rates, inconsistent consumer sentiment, and dealers that continue to push inventory levels lower, particularly in the Motorhome RV and Marine segments."

Even with today's sharp rise, Winnebago shares have lost about half their value over the past 12 months.

Read the original article on Investopedia