The prices of Winnebago industries Inc. and Coachmen Industries Inc. stock shares rebounded sharply today (Dec. 17) after declining more than $2 a share on Tuesday (Dec. 16).
Winnebago’s stock soared $4.85 a share higher today after the company reported, before the stock market opened, that it set sales-revenue and earnings-per-share records during the September-through-November period.
Winnebago stock closed at $65.23 a share in New York Stock Exchange (NYSE) trading, well above its 52-week high of $63.62. In fact, Winnebago’s shares traded for as much as $67.70 earlier in today’s session.
Meanwhile, Coachmen shares declined $2.65 a share Tuesday after the company revealed its earnings for the full year 2003 will end up below previous forecasts because of production inefficiencies resulting from a shortage of RV ovens.
However, Coachmen stock gained $1.25 a share today to close at $17.14 in NYSE trading. Earlier in today’s session, Coachmen stock traded for as much as $18.29, which still placed its below its 52-week high of $19.20, which was reached in recent weeks.
Concerning the RV oven shortage, investment analyst Jeff Tryka with Delafield Hambrecht, a Seattle-based investment bank, said it would impact Coachmen more than Winnebago, because Coachmen is a major producer of towable RVs, while Winnebago builds motorhomes exclusively.
Because profit margins industrywide are more narrow for towables than for motorhomes, the cost of production inefficiencies will gobble up a larger portion of Coachmen’s profits than Winnebago’s, Tryka told SmartMoney.com, a joint publishing venture of Dow Jones & Co. and Hearst Communications Inc.
Tryka added that he attended the National RV Trade Show in Louisville earlier this month and he learned “Winnebago had a much larger supply on hand. It basically had an inventory of ovens to take it through this particular crisis, while Coachmen didn’t have as large an inventory.”
Because the oven shortage is expected to be resolved in February, Tryka said, he does not believe 2004 sales will be negatively impacted. “Next year looks to be a strong year,” he said. “Economic growth has continued strengthening, employment continues to show signs of improvement, consumer confidence is moving in the right direction and interest rates remain low.”
Consequently, Tryka told SmartMoney.com he believes the stocks of Coachmen, Winnebago and Monaco Coach Corp. represent “a buying opportunity.”
Tryka added that he did not own any Coachmen, Winnebago or Monaco shares and Delafield Hambrecht does not have an investment banking relationship with any of those companies.