In military parlance, “D-Day” is the day on which an attack or military operation is to be initiated. On Wednesday, October 17th, Winnebago (NYSE:WGO) is scheduled to announce quarterly earnings. Analysts expect revenue of $499.25 million and EPS of $0.91. The revenue estimate implies 10% growth Y/Y. A plethora of items could cause WGO to come under attack.

Slowing Top Line Growth

Winnebago designs, manufactures and markets motorized and towable recreation products, along with supporting products and services. Motorhomes generally provide living accommodations for up to seven people. Towables are used as temporary living conditions for recreational travel. The company’s revenue has been growing like a bad weed, in line with RV industry shipments. In Q4 2017, Winnebago’s revenue of $455 million was up 72% Y/Y. The growth was partly organic and partly driven by its $500 million acquisition of Grand Designs in late 2016.

In Winnebago’s most recent quarter (Q3 2018), its revenue of $562 million was up 18% Y/Y. Revenue from Motorized homes was up 3%, driven by sales of new products; sales of Towables grew 33% on strong organic growth from the Grand Design and Winnebago branded lines. Organic sales growth and market share gains led to outsized sales of Towables during the quarter.

Total deliveries of nearly 13,000 were up 23% Y/Y. Motorhome deliveries grew 2%, while deliveries of Towables were up 31%. The average sales price (“ASP”) for Motorhomes was flat, while ASP for Towables was up 1%. Read more:



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