Back to top

Image: Bigstock

Thor Industries (THO) Down 8.9% Since Last Earnings Report: Can It Rebound?

Read MoreHide Full Article

A month has gone by since the last earnings report for Thor Industries (THO - Free Report) . Shares have lost about 8.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Thor Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Thor Posts a Surprise Q3 Profit, Tops Sales Estimates

Thor reported a profit of 43 cents a share in the third quarter of fiscal 2020, as against the Zacks Consensus Estimate of a loss of 43 cents. However, earnings of 59 cents a share were recorded in the year-ago quarter.

Net sales in the quarter under review came in at $1,681.7 million, surpassing the consensus mark of $1,419 million. However, the top line declined 32.9% from the prior-year quarter.

Key Takeaways

Net sales in the European RV segment came in at $615.3 million, down from $767.5 million in the prior-year period. Backlog in the segment was $803.5 million as of April 30, 2020, up 16.9%, from the year-ago quarter.

North American Motorized RV sales totaled $264 million for the third quarter, compared to $459.2 million in the prior-year period. North American Towable RV sales were $773.4 million, compared to $1.24 billion sales generated in the prior-year period. Backlog for North American Towable & Motorized RV units stood at $857.9 million and $548 million, respectively, as of Apr 30, 2020.

Thor had cash and cash equivalents of $654.9 million as of Apr 30, 2020. Long-term debt totaled $1,965 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 179.58% due to these changes.

VGM Scores

At this time, Thor Industries has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Thor Industries has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Thor Industries, Inc. (THO) - free report >>

Published in