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Thor (THO) Q3 Earnings Beat Estimates, Guidance Revised

Thor Industries, Inc. THO reported earnings of $2.13 per share for the third quarter of fiscal 2024 (ended Apr 30, 2024), which beat the Zacks Consensus Estimate of $1.89. The bottom line, however, tumbled 4.9% from the year-ago quarter’s earnings of $2.24 per share.

The company registered revenues of $2.80 billion for the fiscal third quarter, outpacing the Zacks Consensus Estimate of $2.72 billion. The top line declined 4.4% year over year.

Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote

Segmental Results

North American Towable RVs: Revenues from the segment came in at $1.07 billion, down 4.7% year over year due to a decrease in overall net price per unit. The figure, however, topped our estimate of $1.02 billion.

Gross profit totaled $138 million, down 4.1% year over year. The pretax income totaled $68.4 million, up from $77.6 million recorded in the year-ago period, primarily due to lower North American Towable RV net sales. The unit’s total backlog was $741.3 million at the quarter's end, down from $757.1 million as of Apr 30, 2023.

North American Motorized RVs: Revenues from the segment totaled $646.9 million, which fell 18.7% year over year, owing to a decrease in unit shipments. The figure also missed our estimate of $726.8 million.

Gross profit totaled $71.8 million, falling 23.1% year over year. Consequently, pretax profit came in at $33.1 million, declining 31.2% from the year-ago period due to lower sales and gross margin percentage. The segment’s backlog was $925.8 million, down from $1.26 billion as of Apr 30, 2023.

European RVs: Revenues from the segment came in at $931.1 million, up 7.4% from the year-ago period, driven by an increase in net price per unit. The figure also beat our estimate of $859.4 million.

Gross profit of $162.9 million increased 7.3% year over year. The segment reported a pretax income of $77.4 million, higher than the year-ago pretax income of $72.4 million. The backlog of the segment was $1.94 billion, which declined from $3.47 billion recorded as of Apr 30, 2023.

Financials

As of Apr 30, 2024, Thor had cash and cash equivalents of $371.8 million and long-term debt of $1.21 billion. During the third quarter of fiscal 2024, THO repurchased 126,754 shares of its common stock.

Revised Guidance for Fiscal 2024

Thor has revised its full-year guidance for fiscal 2024. It now projects its full-year consolidated net sales in the range of $9.8-$10.1 billion, down from the previous guidance of $10-$10.5 billion. The consolidated gross profit margin is now expected in the band of 13.75-14%, down from the previous range of 14-14.5%. Earnings per share (EPS) are now expected in the range of $4.50-$4.75, down from the previous guidance of $5-$5.50.

Zacks Rank & Key Picks

THO currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK and Geely Automobile Holdings Limited GELYY. BLBD and OSK sport a Zacks Rank #1 (Strong Buy) each, while GELYY carries Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 21 cents and 34 cents, respectively, in the past 30 days.

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