By Christiana Sciaudone
- 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.
