Unpacking Q2 Earnings: Winnebago (NYSE:WGO) In The Context Of Other Automobile Manufacturers Stocks

Let’s dig into the relative performance of Winnebago (NYSE:WGO) and its peers as we unravel the now-completed Q2 automobile manufacturers earnings season.

Much capital investment and technical know-how are needed to manufacture functional, safe, and aesthetically pleasing automobiles for the mass market. Barriers to entry are therefore high, and auto manufacturers with economies of scale can boast strong economic moats. However, this doesn’t insulate them from new entrants, as electric vehicles (EVs) have entered the market and are upending it. This has forced established manufacturers to not only contend with emerging EV-first competitors but also decide how much they want to invest in these disruptive technologies, which will likely cannibalize their legacy offerings.

The 5 automobile manufacturers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 6.1%.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.

Amidst this news, automobile manufacturers stocks have had a rough stretch. On average, share prices are down 19.3% since the latest earnings results.

Weakest Q2: Winnebago (NYSE:WGO)

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Winnebago reported revenues of $786 million, down 12.7% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a softer quarter for the company with a miss of analysts’ earnings estimates.

CEO Commentary“While outdoor industry market conditions remain challenged given inconsistent retail patterns and sustained dealer discipline relative to field inventory levels, we are generally pleased with the resiliency of our portfolio, as our teams balance the pursuit of long-term share, profitability and customer satisfaction across our premium brands,” said Michael Happe, President and Chief Executive Officer.

Winnebago delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 2.1% since reporting and currently trades at $57.90.

Read our full report on Winnebago here, it’s free.

Best Q2: General Motors (NYSE:GM)

Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

General Motors reported revenues of $47.97 billion, up 7.2% year on year, outperforming analysts’ expectations by 5.9%. The business had a stunning quarter with an impressive beat of analysts’ operating margin estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.3% since reporting. It currently trades at $45.96.

Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free.

Ford (NYSE:F)

Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.

Ford reported revenues of $47.81 billion, up 6.3% year on year, exceeding analysts’ expectations by 6.5%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 21.3% since the results and currently trades at $10.75.

Read our full analysis of Ford’s results here.

Rivian (NASDAQ:RIVN)

The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric adventure vehicles and commercial delivery vans.

Rivian reported revenues of $1.16 billion, up 3.3% year on year. This result met analysts’ expectations. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ volume and operating margin estimates.

The stock is down 24% since reporting and currently trades at $11.25.

Read our full, actionable report on Rivian here, it’s free.

Nikola (NASDAQ:NKLA)

Seeking to transform the heavy-duty transportation industry, Nikola (NASDAQ:NKLA) develops and manufactures zero-emission trucks.

Nikola reported revenues of $31.32 million, up 104% year on year. This number topped analysts’ expectations by 19.6%. Overall, it was a very strong quarter as it also put up a decent beat of analysts’ operating margin and EPS estimates.

Nikola scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 46% since reporting and currently trades at $4.21.

Read our full, actionable report on Nikola here, it’s free.

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