Winnebago (WGO.US) stock jumped over 6.0% on Wednesday after the recreational vehicle maker reported better than expected financial results for the third quarter mainly thanks to higher prices and increase of its gross profit margins.
- Company earned an adjusted $4.13 per share, easily beating market estimates of $2.96;
- Revenue also rose sharply to $1.458 billion from $960.7 million and topped analysts’ expectations of $1.207 billion;
- Recent acquisition of pontoon boat company Barletta, price increases and shipments related to dealer backlog supported sales figures;
- CEO Michael Happe said the company managed to cut its order backlog and recorded solid performance during the crucial spring selling season. Happe said Winnebago is taking market share and continued pricing actions to offset meaningful component and material cost inflation.
- Winnebago recorded buybacks of $70.0 million during the latest quarter for the first time in the company's history.
- Management expects that supply chain inconsistencies and inflation pressures will continue through 2023.
Winnebago (WGO.US) stock is down nearly 40% for the year to date, however recently buyers once again managed to halt declines around major support at $44,00 which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. As long as the price sits above this level, upward correction towards major resistance at $54,50 cannot be ruled out. This level is marked with the upper limit of the 1:1 structure and upper boundary of the descending level. Source: xStation5