Shares of recreational vehicle maker Winnebago Industries (WGO) are trading lower despite reporting quarterly financial results earlier today that beat analysts' expectations.

EARNINGS: Winnebago reported first quarter earnings per share of 42c on revenue of $245.3M, surpassing analyst expectations of 31c and $232.34M, respectively. Consolidated revenues improved year-over-year due primarily to strong growth in the company's Towable business -- which benefited from three weeks of sales from Grand Design, contributing $25.8 million during the quarter, as well as continued organic growth in the Winnebago-branded Towable business which grew 44% -- slightly offset by a modest decline in Motorized revenues, Winnebago said. Gross margin was "steady" year over year, the company noted.

CONSUMERS EMBRACING RV LIFESTYLE: In late November, Winnebago rival Thor Industries (THO) reported robust financial performance for its first quarter of fiscal year 2017 and noted that the outlook for future RV growth remains positive, as consumers are "embracing the RV lifestyle."

GRAND DESIGN PURCHASE: On October 3, Winnebago announced it would acquire Grand Design Recreational Vehicle.The RV maker added in its statement at the time that the acquisition is expected to be accretive to its growth profile, profit margins and EPS. Michael Happe, Winnebago's President and CEO, commented, "The addition of Grand Design will accelerate our expansion in the towables business, creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market and to drive improved profitability and long-term value for stakeholders." According to Winnebago, the combined company will have approximately $1.4B in pro forma revenue along with a broader and more balanced portfolio well-positioned to deliver growth, improved profitability and value. At the time, research firm Baird upgraded Winnebago to Outperform from Neutral.

PRICE ACTION: After hitting a 52-week high earlier today, shares of Winnebago are lower in afternoon trading by 2.7% to $36.20.

OTHERS TO WATCH: Other companies in the RV space include Thor Industries, Patrick Industries (PATK) and Drew Industries (DW).