Why Is Winnebago (WGO) Down 18.4% Since Last Earnings Report?

Core Viewpoint - Winnebago Industries has experienced a decline in share price by approximately 18.4% since its last earnings report, underperforming the S&P 500 index [1][2]. Earnings Performance - In Q4 of fiscal 2025, Winnebago reported adjusted earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 58 cents, and showing an increase from 28 cents per share in the same period last year [3]. - The company achieved revenues of $777.3 million for the quarter, exceeding the Zacks Consensus Estimate of $744 million, marking a year-over-year increase of 7.82% [3]. Segmental Performance - Towable RV Segment: Revenues decreased by 3.4% year over year to $306.3 million, missing the estimate of $329.6 million. Deliveries fell by 4.3% to 7,833 units, also below the estimate of 8,680 units. Operating income rose by 38.3% to $21.4 million, but fell short of the expected $22.7 million [4]. - Motorhome RV Segment: Revenues increased by 17.3% year over year to $361.2 million, exceeding the estimate of $281.3 million. Deliveries rose by 12.9% to 1,745 units, surpassing the estimate of 1,331 units. However, the segment recorded an operating loss of $0.3 million, missing the expected operating income of $8.9 million [5]. - Marine Segment: Revenues totaled $94.9 million, up 17.9% year over year but below the estimate of $97.2 million. Deliveries increased by 11.7% to 1,164 units, falling short of the estimate of 1,228 units. The segment reported an operating income of $6.7 million, which was below the expected $7.3 million [6]. Financials & Outlook - As of August 30, 2025, Winnebago had cash and cash equivalents of $174 million and long-term debt of $540.5 million [7]. - For fiscal 2026, the company expects consolidated revenues to be between $2.75 billion and $2.95 billion, compared to $2.8 billion in fiscal 2025. Adjusted EPS is projected to be between $2 and $2.70, up from $1.67 in fiscal 2025 [7]. Estimate Trends - Estimates for Winnebago have trended downward over the past month, with a significant shift of -54.99% in the consensus estimate [8]. VGM Scores - Winnebago currently holds a strong Growth Score of A, but has a low Momentum Score of F. The stock also received an A grade on the value side, placing it in the top 20% for this investment strategy [9][10]. Overall Outlook - The overall trend of estimates indicates a downward shift, with Winnebago holding a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].