What Happened?

Shares of RV Manufacturer Winnebago (NYSE:WGO) fell 5.1% in the morning session after the company reported underwhelming preliminary first-quarter (fiscal Q3) 2025 results, with sales and EPS guidance below Wall Street's estimates.

Management cited some of the issues faced during the quarter adding "What began as an encouraging selling season in March was hampered by growing macroeconomic uncertainty, resulting in worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter."

The shares closed the day at $32.83, down 5.9% from previous close.

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What The Market Is Telling Us

Winnebago’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 8 months ago when the stock dropped 10.9% on the news that the company reported disappointing third-quarter earnings, with revenue, EPS, and adjusted EBITDA falling below Wall Street's estimate.

Management highlighted various headwinds, including "uncertain retail conditions, higher inventory carrying costs, and slightly elevated inventories in the motorhome segment, leading to continued dealer hesitancy and increased promotional efforts."

Similarly, revenue and EPS guidance for FY'2025 fell below consensus estimates. Overall, it was a weaker quarter for the company.

Winnebago is down 31.5% since the beginning of the year, and at $33 per share, it is trading 49.3% below its 52-week high of $65.10 from November 2024. Investors who bought $1,000 worth of Winnebago’s shares 5 years ago would now be looking at an investment worth $507.07.

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