Thor Industries (THO - Free Report) is a company that manufactures a wide range of recreational vehicles (RVs) at various production facilities throughout Indiana and Ohio. They sell their RVs through independent dealers in the U.S. and Canada.
Shares of THO have experienced a rocky stretch lately, falling more than 55% year-to-date, and mixed results in Thor’s second-quarter earnings report didn’t much help the stock.
Earnings of $1.67 per share missed the Zacks Consensus Estimate and fell roughly 26% from the year-ago period.
Revenues hit $1.87 billion, which did beat our consensus figure but slumped 3.1% year-over-year.
Gross profit decreased 18.9% to $244.4 million, while gross profit margin fell 13%.
Sales of Towable RVs declined 13.2% year-over-year to $1.14 billion, and pre-tax income from the segment decreased 28.3% year-over-year due to elevated dealers’ inventory levels at certain locations, among other factors.
Sales from Motorized RVs dropped 13.2% year-over-year.
“Our fourth quarter results reflect the actions taken during the period to balance dealer inventory levels," said Bob Martin, president and CEO. “We believe our reduced production levels, combined with higher promotional costs and solid retail demand, have improved the position of our dealers' inventories as they enter the new model year and prepare for the upcoming Dealer Open House.
It didn’t take long for analysts to lower their estimates for fiscal 2019, and four have slashed their earnings outlook in the last 60 days; our consensus has fallen $1.12 from $9.26 $8.14. Earnings are expected to decline around 4.8% for this time period.
The consensus estimate has fallen for next fiscal year, too, down $1.68 from $10.45 to $8.77 per share.
THO is now a Zacks Rank #5 (Strong Sell).
Despite expecting “near-term growth challenges” and other headwinds, Thor Industries believes it will continue to benefit from the overall healthy macroeconomic environment, as well as favorable industry trends.
If you’re an investor looking for a recreational stock pick to add to your portfolio, you may want to consider Malibu Boats (MBUU - Free Report) . This sport boat maker is a #1 (Strong Buy) on the Zacks Rank, and currently expects over 24% earnings growth for the year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Thor Industries (THO - Free Report) is a company that manufactures a wide range of recreational vehicles (RVs) at various production facilities throughout Indiana and Ohio. They sell their RVs through independent dealers in the U.S. and Canada.
Shares of THO have experienced a rocky stretch lately, falling more than 55% year-to-date, and mixed results in Thor’s second-quarter earnings report didn’t much help the stock.
Earnings of $1.67 per share missed the Zacks Consensus Estimate and fell roughly 26% from the year-ago period.
Revenues hit $1.87 billion, which did beat our consensus figure but slumped 3.1% year-over-year.
Gross profit decreased 18.9% to $244.4 million, while gross profit margin fell 13%.
Sales of Towable RVs declined 13.2% year-over-year to $1.14 billion, and pre-tax income from the segment decreased 28.3% year-over-year due to elevated dealers’ inventory levels at certain locations, among other factors.
Sales from Motorized RVs dropped 13.2% year-over-year.
“Our fourth quarter results reflect the actions taken during the period to balance dealer inventory levels," said Bob Martin, president and CEO. “We believe our reduced production levels, combined with higher promotional costs and solid retail demand, have improved the position of our dealers' inventories as they enter the new model year and prepare for the upcoming Dealer Open House.
It didn’t take long for analysts to lower their estimates for fiscal 2019, and four have slashed their earnings outlook in the last 60 days; our consensus has fallen $1.12 from $9.26 $8.14. Earnings are expected to decline around 4.8% for this time period.
The consensus estimate has fallen for next fiscal year, too, down $1.68 from $10.45 to $8.77 per share.
THO is now a Zacks Rank #5 (Strong Sell).
Despite expecting “near-term growth challenges” and other headwinds, Thor Industries believes it will continue to benefit from the overall healthy macroeconomic environment, as well as favorable industry trends.
If you’re an investor looking for a recreational stock pick to add to your portfolio, you may want to consider Malibu Boats (MBUU - Free Report) . This sport boat maker is a #1 (Strong Buy) on the Zacks Rank, and currently expects over 24% earnings growth for the year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on THO - FREE
Get the latest research report on MBUU - FREE