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Earnings: RV industry slump pulls down Winnebago Q2 sales, profit

Recreational vehicle maker Winnebago Industries, Inc. (WGO) posted its second-quarter 2019 earnings before the opening bell on March 25.

Revenue slumped 7.6% to $432.7 million, while gross profit slipped 1.8% to $66.4 million.

Gross profit margin rose by 100 basis points in the quarter, driven by revenue mix, pricing and Motorhome segment operational improvements.

Operating income fell 18% to $28.9 million, with a fall in RV unit sales.

Net income slipped 2.2% to $21.6 million, while earnings declined 1.4% to 68 cents per diluted share.

The results beat analyst estimates of 56 cents-a-share on expected revenue of about $426 million.

Winnebago second quarter 2019 segment units delivered and backlog

“Although Company sales decreased modestly, we continued to materially outpace the industry and expand our year-over-year margins, primarily due to the improved product vitality and profitability of our Motorhome segment and the continued strength and momentum of our Towables segment,” said CEO Michael Happe.

RV SALES DROWN WINNEBAGO

According to Winnebago chief Michael Happe, “challenging macro conditions within the RV industry” led to the poor RV sales, with dealers cutting down their overall inventory levels in the quarter.

In the second quarter, revenues for the Motorhome segment slumped 17.3% to $164.7 million, on lower Class A and Class C unit sales, partially offset by a modest rise in Class B unit sales.

As of Feb. 23, 2019, Winnebago had a total outstanding debt of $276.9 million and a working capital of $175.3 million. The debt-to-equity ratio slipped to 48.5% from 54.5% as of August 25, 2018, and the ratio of net debt to Adjusted EBITDA was 1.6x as of the end of the quarter. Cash flow from operations was $51.9 million for the first six months of fiscal 2019, an increase of $36.9 million from the same period in fiscal 2018.

Additionally, on March 8, 2019, the Winnebago board of directors approved a quarterly dividend of $0.11 per share. This cash dividend is payable on April 17, 2019, to stockholders of record at close of business on April 3, 2019.

 

 

 

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Yirendai slips as operational weakness overrides Q4 earnings beat

China-based fintech firm Yirendai (YRD) showed broad-based weakness in the fourth quarter, sending its stock down 3.9% during pre-market trading on Monday. Investors remained unmoved by the adjusted earnings of $1.32 per ADS in Q4, much higher than the street projection of 51 cents per ADS.

Hurt by a decline in loan origination volume, total net revenue in the fourth quarter tumbled 30% to $184.8 million.

The company facilitated $1.217 billion worth of loans during the quarter through its online market place, over 31% of which were generated by repeat borrowers. The amount of loan facilitated represents a 38% decline compared to last year.

YRD stock has wiped out over 70% of its value in the trailing 52 weeks. Since the beginning of this year, though, it has recovered somewhat and has gained 6.5%.

READ: NOKIA SHARES PLUNGE AFTER COMPANY WARNS OF COMPLIANCE ISSUES

CEO Yihan Fang said, “Demand for our wealth management product continues to be strong, close to half a million retail investors chose to invest in our platform this year despite volatilities in the industry and we continue to see average AUM per investor increasing.”

“Going into 2019,” CFO Dennis Cong said,  “we will maintain focused on continual diversification in funding sources, expanding our loan product mix as well as enhancing our risk management strategies to support our credit and wealth management business growth.”

 

Earnings Calendar: Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

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