Investing.com — LCI Industries (NYSE:LCII) rose more than 5% after the company said second quarter sales are likely to be better than expected.
The maker of recreational vehicle equipment said preliminary second quarter sales should be between $515 million and $530 million, ahead of the consensus of $376 million, according to analysts tracked by Investing.com. While it beat analysts’s expectations, it compares to 2019’s second quarter net sales of $629 million, itself a decrease of 8% from a year earlier.
The company touted RVs as the safest way for American families to vacation as the reason for the latest sales trends.
“Increased demand for RVs drove accelerated outdoor recreational products sales, which was well ahead of increasingly bullish expectations as we moved through the early part of the second quarter,” said Jason Lippert, LCI Industries’ president and chief executive officer. “A recent RVIA survey reported that 46 million people intend on taking a trip in an RV in the next 12 months.”
Shares of LCI have almost doubled since March. The company has three buy ratings, two holds and no sells, according to data compiled by Investing.com
Last month, Winnebago Industries (NYSE:WGO) fell after reporting better than expected third-quarter results, which were supported by a surprise increase in motor home sales. But revenue was down 24% from a year earlier, and gross profit came in at $32 million compared to $87 million for the fiscal 2019 period.
Winnebago shares are up almost 4% on Wednesday.
Lipper said the company’s “long-term fundamentals are strong, and our sales are being further propelled by the consumer’s desire to find safe, alternative outdoor activities that allow them to spend time with family but also practice social distancing.”