Benzinga | Mar 23, 2021 10:08AM EDT

Winnebago Industries Earnings: A Preview



On Wednesday, March 24, Winnebago Industries (NYSE:WGO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Winnebago Industries management projections, analysts predict EPS of $1.41 on revenue of $805.23 million. In the same quarter last year, Winnebago Industries reported earnings per share of $0.67 on revenue of $626.81 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 110.45% increase for the company. Revenue would be up 28.46% from the same quarter last year. Here is how the Winnebago Industries's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.98 0.90 -0.44 0.67EPS Actual 1.69 1.45 -0.26 0.67Revenue Estimate 752.50 M 722.89 M 346.10 M 613.97 MRevenue Actual 793.13 M 737.81 M 402.46 M 626.81 M

Stock Performance

Shares of Winnebago Industries were trading at $80.89 as of March 22. Over the last 52-week period, shares are up 174.72%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Winnebago Industries is scheduled to hold the call at 10:00:00 ET and can be accessed here.