Monaco Coach Corp. lowers outlook, swings to profit in Q3
Shares of Monaco Coach Corp. (NYSE: MNC) are taking a dive today after the manufacturer of recreational vehicles’ lowered its outlook, overshadowing positive news that it swung to a profit in the third quarter.
For the three months ended Sept. 29, the small cap recorded net income of $3.7 million, or $0.12 per share, compared with a $7.1 million loss, or loss of $0.24 per share in the third quarter last year. Earnings were two pennies above the $0.10 per share ten analysts surveyed by Thomson on average had forecasted.
Revenues clocked in at $322.4 million, right in line with the $322.21 million seven analysts polled by Thomson were projecting on average. The current quarter’s revenues represent a 10.2% increase over the $292.5 million in revenues earned in the third quarter of 2006.
Going forward, Monaco said based on its current backlog, rates of production and production days available in the fourth quarter, revenue will be between $290 million and $300 million, and that the prescribed level of revenue coupled with its consolidation of towable operations will lead to lower margins and earnings per share for the fourth quarter of $0.02 to $0.04. Nine analysts polled by Thomson are on average forecasting earnings of $0.10 per share, while six analysts polled by Thomson are on average expecting revenues of $315.41 million.
For 2008, based on the Recreational Vehicle Industry Association's flat 2008 class A shipment forecast, the company said it’s forecasting its fiscal 2008 sales to be approximately even with 2007, or $1.27 billion to $1.28 billion. Seven analysts polled by Thomson were on average projecting 2008 revenues of $1.44 billion.
Shares of Monaco Coach (MNC) tumbled 18.12%, or $2.70 to $12.19 at 12:04 p.m. ET. Shares of Monaco Coach have been trading in the range of $11.41 to $17.95 for the past 52 weeks.
