Winnebago Industries, Inc.(NYSE: WGO) stock lost over 4.8% on December 20^th, 2017 (as of   1:39PM EST; Source: Google finance) on the back of the lower than expected performance from the firm. The group’s Motorized segment’s profitability continued to be under pressure on the back of the new product line start-up costs, ongoing expenses related to the ramp up of their West Coast production facility and a rise in direct material costs. The Motorized revenues fell 2.4% yoy to $190.4 million during the first quarter of 2018, while the Segment’s Adjusted EBITDA lost 71.6% yoy to $3.2 million on a yoy basis. As a result, the group’s Adjusted EBITDA margin lost 400 basis points, on the back of the investments related to the start-up of new lines and rising operational and direct materials costs.

On the other hand, WGO stock delivered an outstanding performance during the last six months generating over 86.5% in the last six months. The group delivered a decent overall Fiscal 2018 first quarter ended at November 25, 2017 performance with revenues rising 83.5% yoy to $450.0 million, against $245.3 million in pcp as this comprised three weeks of Grand Design RV performance.  Gross profit rose to $62.8 million, which is a rise of 117.6% against pcp.  Gross profit margin enhanced 220 basis points driven by more profitable Towable segment.

The Towable segment continued to reported a strong performance with Revenues rising to 259.7 million for the quarter, as compared to $209.5 million in pcp boosted by $195.4 million in revenue contribution from the Grand Design RV acquisition coupled with an ongoing growth in Winnebago-branded Towable products, which increased more than 50% against pcp.  Segment Adjusted EBITDA reached $32.3 million, against $28.7 million in pcp while Adjusted EBITDA margin boosted 530 basis points, on the back of better volumes and a favorable product mix, including the animalization of Grand Design RV within this segment.

The group would be paying a quarterly cash dividend of $0.10 per share payable on January 24, 2018, to common stockholders of record at January 10, 2018.