Winnebago (WGO) Shares Rebound as Earnings Miss But Inventories Near Record Lows
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Price: $31.55 -3.13%
Financial Fact:
Total operating expenses: 12.98M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Financial Fact:
Total operating expenses: 12.98M
Today's EPS Names:
SVBT, ZEO, OTLK, More
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After gapping about 4.7% lower at this morning's open, shares of Winnebago (NYSE: WGO) have now bounced, currently up more than 9% to $7.11.
The company reported Q3 earnings that came in below analyst estimates earlier this morning. The Q3 loss was $0.29, 2 cents below the Street estimate, while sales for the quarter came in at $50.8 million down about 64% from the $139.7 million reported in Q308.
The good news came when Chairman Bob Olson discussed Winnebago's inventory levels: "We are pleased by our successful efforts to reduce inventory during the quarter. While market conditions remain very challenging, we were able to generate $14.7 million of cash from operations during our third quarter as a result of aggressive management of our working capital. On a fiscal year to date basis through the third quarter, cash generated from operations has increased over 19 percent compared to last year."
On the conference call, Olson elaborated by saying "We're an eyelash away from being at the lowest inventory levels in the history of our company."
As the stock is now catching a bid, it appears this is one of those cases where traders are weighing the quarterly earnings less than some other metric. Just a little heads up that the most visible thing is not always the most important.
The company reported Q3 earnings that came in below analyst estimates earlier this morning. The Q3 loss was $0.29, 2 cents below the Street estimate, while sales for the quarter came in at $50.8 million down about 64% from the $139.7 million reported in Q308.
The good news came when Chairman Bob Olson discussed Winnebago's inventory levels: "We are pleased by our successful efforts to reduce inventory during the quarter. While market conditions remain very challenging, we were able to generate $14.7 million of cash from operations during our third quarter as a result of aggressive management of our working capital. On a fiscal year to date basis through the third quarter, cash generated from operations has increased over 19 percent compared to last year."
On the conference call, Olson elaborated by saying "We're an eyelash away from being at the lowest inventory levels in the history of our company."
As the stock is now catching a bid, it appears this is one of those cases where traders are weighing the quarterly earnings less than some other metric. Just a little heads up that the most visible thing is not always the most important.
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