Winnebago Industries (NYSE: WGO) saw its stock plummet 5.30% in pre-market trading on Wednesday after the recreational vehicle manufacturer reported its third-quarter fiscal 2025 results. Despite beating earnings estimates, the company's significantly lowered full-year guidance has sparked investor concerns.

For the quarter ended May 31, Winnebago reported adjusted earnings per share of $0.81, surpassing the analyst consensus of $0.79. However, net income fell to $17.6 million, or $0.62 per share, down from $29 million, or $0.96 per share, in the same quarter last year. Revenue slightly declined by 1.4% to $775.1 million, primarily due to lower average selling prices and reduced motorhome shipments.

The most significant factor driving the stock's decline was Winnebago's revised guidance for fiscal year 2025. The company now expects adjusted earnings per share between $1.20 and $1.70, drastically lower than its previous forecast of $2.75 to $3.75. Revenue projections were also cut to a range of $2.7 billion to $2.8 billion, down from the earlier estimate of $2.8 billion to $3 billion. CEO Michael Happe cited "challenges posed by an uncertain economic environment" and softer retail demand across the outdoor recreation sector as reasons for the guidance reduction. The company is aligning production closely with existing field inventory in response to the continued soft demand, particularly in its motorhomes business.