By Christiana Sciaudone
Investing.com -- Recreational vehicle leader Winnebago Industries (NYSE: WGO ) Inc. was supposed to be one of the few big winners as coronavirus forced would-be vacationers to change their plans, but even better than expected sales couldn't impress investors.
Shares of Winnebago are down 7% Wednesday despite the company reporting better than expected third-quarter results, which were supported by a surprise increase in motor home sales. Still, revenue for the third quarter fell 24% from a year earlier. Gross profit came in at $32 million compared to $87 million for the fiscal 2019 period. The company had a loss of $8.2 million compared to operating income of $49 million in the third quarter of last year.
Earlier today, CFRA Research downgraded the stock to sell from hold. According to MarketWatch, WGO has six buy-equivalent ratings, three holds and one sell, with an average price target of $56.88.
Shares of the RV maker has tripled since hitting a 2020 low in March, when coronavirus fears shattered markets globally.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.