Advisory firm Zacks Investment Research announced today (Aug. 5) it has included Fleetwood Enterprises Inc. stock on its “strong sell” list because of challenges the manufactured housing side of Fleetwood’s business continues to face.
Fleetwood revealed last week its motorhome and travel-trailer sales revenue were up sharply during the first quarter of its fiscal year 2004, which ended July 27. However, the company also reported its manufactured-home sales declined 14% and that its folding-camper sales were down 27% fot May-through-July period.
Because of the strong performance of its motorhome and travel-trailer/fifth-wheel businesses, Fleetwood believes it will report a small profit for the three months ended July 27. If Fleetwood reports a larger-than-expected quarterly profit for the May-through-July period, then investment “analysts would probably be more likely to raise Fleetwood Enterprises’ earnings estimates,” according to Zacks.
Fleetwood plans to annouce its earnings for the three months ended July 27 in early September.
According to a statement from Zacks, “for the moment, if may be best for investors to play it safe in this tough (manufactured home) industry and watch for the company’s estimates to move higher before adding or deepening a position.”