Demographics On Winnebago’s Side

Article Excerpt

WINNEBAGO INDUSTRIES INC. $29 (New York symbol WGO; Aggressive Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Average) earned $0.40 a share in its third fiscal quarter ended May 27, 2006, down 23.1% from $0.52 a year earlier. The company recently began expensing stock options, and these costs cut its income in the most recent quarter by $0.02 a share. Revenue fell 13.6%, to $220.3 million from $255.0 million, as high fuel prices hurt motor home demand. The company is also selling more lower-priced models, which also cuts revenue. The stock has moved down lately, and now trades at 19.9 times the $1.46 a share it should earn in fiscal 2006. The $0.40 dividend yields 1.4%. Winnebago’s long-term future is still bright. Sales should grow as more baby boomers retire over the next few years. It continues to launch more fuel-efficient models, which has helped maintain its market share. It’s also doing a good job of keeping its inventories low, which lets it…

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