Winnebago Industries, Inc. (NYSE:WGO) early Wednesday [Mar 22, 2017 | 7:04am] posted much better than expected fiscal second quarter earnings results, as a recent acquisition bolstered its top and bottom line figures.

Written by StockNews.com

The Forest City, IA-based recreational vehicle (RV) maker reported Q2 earnings per share (EPS) of $0.48, which was $0.04 better than the Wall Street consensus estimate of $0.44.

Revenues surged 64.2% from last year to $370.5 million, also easily topping analysts’ view for $345.19 million.

The company also noted that gross profit jumped 95.1% from the year-ago period, helped by higher margins and the favorable inclusion of Grand Design products within its overall sales mix.

Winnebago’s Motorized segment revenue rose 3% in the latest quarter to $198.9 million, with deliveries up 3.6% but average selling prices declining 5.2%.

Meanwhile, its Towable segment sales surged to $171.6 million, helped mainly by its recent Grand Design acquisition, although its Winnebago-branded Towable sales also saw strong year-over-year growth of more than 36%.

The company commented on its latest results and its future plans to bolster its business via press release:

“Our second quarter results reflect our progress in transforming Winnebago into a larger company with greater scale, a more balanced portfolio, increased profitability and better positioned to compete effectively across the entire RV market. In our first full quarter with Grand Design as part of our organization, we continued to deliver significant wholesale and retail growth in our Towable segment, enabling us to reach our highest level of consolidated gross margin in nearly a decade. In addition to delivering improved profitability, we also made significant progress in further strengthening our balance sheet by reducing our debt by $13 million in the quarter. As we move into the second half of 2017, we intend to build on this momentum by further expanding Towable market penetration and working diligently to improve future results for our Motorized business by strengthening product value and leveraging our reputation for industry leading customer service.”