Winnebago Industries (NYSE: WGO) saw its stock price surge 5.39% in pre-market trading on Wednesday following the release of its third-quarter fiscal 2025 results. The recreational vehicle manufacturer reported better-than-expected earnings, despite facing challenges in the current economic environment.

The company announced adjusted earnings per share of $0.81, surpassing analysts' estimates of $0.79. This represents a 28.32% decrease compared to the same period last year but still managed to beat market expectations. Winnebago's net revenues for the quarter came in at $775.1 million, slightly above the consensus estimate of $774.81 million, though down 1.39% year-over-year.

However, the positive sentiment was tempered by Winnebago's decision to lower its full-year guidance. The company now expects fiscal 2025 net revenues to range between $2.7 billion and $2.8 billion, down from its previous forecast of $2.8 billion to $3 billion. Adjusted earnings per share for the full year are now projected to be between $1.20 and $1.70, significantly lower than the earlier estimate of $2.75 to $3.75. CEO Michael Happe cited the uncertain economic environment and softer retail demand across the outdoor recreation sector as reasons for the revised outlook. Despite these challenges, investors appear to be focusing on the company's ability to outperform quarterly expectations, driving the stock's pre-market rally.