Winnebago Industries, Inc. ( WGO ) shares are trading lower after reporting third-quarter results.

The company reported quarterly earnings per share of $1.13, missing the street view of $1.34.

Quarterly revenues of $786.0 million missed the analyst consensus of $806.13 million. Revenues fell 12.7% year over year, driven by product mix and lower volume related to market conditions.

Gross profit was $118.2 million, a decrease of 22.0% in the year-ago period. Gross profit margin decreased 180 basis points to 15.0% as a result of deleveraging, operational efficiency challenges, and higher warranty expense.

“Notwithstanding difficult retail headwinds in the Motorhome segment, our Towable RV business generated higher revenue versus the same period a year ago and our Barletta pontoon retail share grew to double digits for the trailing three- and six-month periods through April,” said Michael Happe, President and Chief Executive Officer. 

Operating income was $43.5 million, a decrease of 46.0% year over year. Consolidated Adjusted EBITDA was $58.0 million, a decrease of 39.8%.

As of May 25, cash and equivalents totaled $318.1 million. The company had total outstanding debt of $695.4 million.

On May 15, the company approved a quarterly cash dividend of $0.31 per share, payable on June 26, 2024.

“We are also particularly excited about the upcoming market release in our fourth quarter of the Grand Design Lineage motorhome product as well as the Winnebago Connect intelligent control system being introduced on the Winnebago Navion line. Both strategies open new growth opportunities for our organization,” Happe added.

Price Action: WGO shares are trading lower by 2.45% to $55.31 at last check Thursday.

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