Stock Analysis: Winnebago, the Way To Go: WGO 

December 18, 2020, 10:02 am EST

Winnebago, the Way To Go: WGO 

As we mentioned in the 12/15 article “New Lifestyle For Post Pandemic Era: WGO” , Winnebago (WGO) did not disappoint us by making a strong earning report this morning. 2021 Q1 WGO Earning Report highlights 

  • Quarterly Revenues Up 34.8% Year-Over-Year, Bolstered by Strong End Consumer Demand
  • First Quarter Gross Margin Expansion of 390 Basis Points
  • Reported Diluted EPS of $1.70; Adjusted EPS of $1.69 Up 131.5% Over Prior Year 
  • Record Order Backlogs and Retail Sales Momentum Validate Continued Interest in the Outdoors

+35% sales growth is solid evidence that its business enters into a high growth period. It is important to note that sales or so-called top-line are the total money received by providing products or customers whereas earning is the bottom-line after subtracting expenses, cost, etc. Sometimes, earning growth can be manipulated by cutting costs to boost its numbers. But, sales growth is the key for a long term growth and harder to deceive investors. Thus, WGO should have a good start for 2021. 

Technically, a breakout with a high volume is the pivot point to start its uptrend rally. Hopefully, WGO turns on its engine to have a pleasant journey for weeks or months to come.

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