Investors drove shares of Winnebago Industries Inc. (NYSE:WGO) higher in premarket trading Wednesday despite missing profit forecasts for its fiscal second quarter.
The recreational vehicle manufacturer booked adjusted net income of US$0.62 per share, compared with US$0.48 a year earlier, while revenue rose to US$468.4mln from US$370.5mln in the year-ago quarter.
Employees to benefit from tax windfall
Analysts had expected a profit of US$0.65 per share on sales of US$438.9mln, on average.
But a 55% increase in towable revenue caught the attention of Wall Street, accelerating the Forest City, Iowa, company’s shares by nearly 2%, to US$44.75, before the opening bell.
The company also said it saw a US$0.07 per share boost in the quarter due to recent changes in U.S. tax laws and will pass some of that benefit on to employees in the form of wage increases and bonuses.