Thor Industries (THO - Free Report) posted adjusted earnings for second quarter 2023 of 50 cents per share, which lagged the Zacks Consensus Estimate of $1.10 per share. This underperformance can be largely attributed to lower-than-anticipated revenues from the North American Towable RVs and North American Motorized RVs segments.
The bottom line declined massively by 89.5% from the year-ago profit of $4.79 per share. The company registered revenues of $2,347 million for the quarter under review, missing the Zacks Consensus Estimate of $2,531 million. The top line also declined 39.4% year over year.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $830 million, down 58.2% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also missed the Zacks Consensus Estimate of $1,120 million.
Gross profit totaled $52.9 million, declining 86% year over year. The pretax loss totaled $7,119 million, down from $275.9 million recorded in the year-ago period amid lower gross profit margins. The unit’s total backlog was $1.15 billion at quarter-end, down sharply from $10.4 billion as of Jan 31, 2022.
North American Motorized RVs: Revenues from the segment totaled $738.6 million, which fell 24.4% year over year, owing to a decrease in unit shipments. The top line also lagged the consensus mark of $1,040 million. Gross profit totaled $107.2 million, dwindling 31.4% year over year. Consequently, pretax profit came in at $61.5 million, declining 40.8% from the year-ago period. The segment’s backlog was $1.85 billion, down from $4.23 billion as of Jan 31, 2022.
European RVs: Revenues from the segment came in at $647 million, down 10.6% from the year-ago period. However, the top line outpaced the consensus mark of $547 million. Gross profit of $91.4 million, rising 1.4% year over year. The segment reported a pretax income of $12 million, higher than the year-ago level of $9.6 million. The backlog of the segment was $3,055 million, reflecting a rise from $3,051 million recorded on Jan 31, 2022.
Financials
As of Jan 31, 2023, Thor had cash and cash equivalents of $281.6 million and long-term debt of $1,758.5 million. During the second quarter of 2023, THO repurchased $25.4 million of common stock.
Revised Guidance for 2023
Thor revised its full-year guidance for fiscal 2023. Thor now projects its full year consolidated net sales in the range of $10.5-$11.5 billion, down from the range of $11.5-$12.5 billion estimated during the first quarter of 2023. The consolidated gross profit margin is now expected to be in the range of 13.4-14.2%, down from the range of 14.2-14.9%. Diluted earnings per share are now expected to be in the range of $5.50-$6.50, down from previously projected range of $7.40-$8.70.
Zacks Rank & Key Picks
THO currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 4.02%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Thor Industries (THO - Free Report) posted adjusted earnings for second quarter 2023 of 50 cents per share, which lagged the Zacks Consensus Estimate of $1.10 per share. This underperformance can be largely attributed to lower-than-anticipated revenues from the North American Towable RVs and North American Motorized RVs segments.
The bottom line declined massively by 89.5% from the year-ago profit of $4.79 per share. The company registered revenues of $2,347 million for the quarter under review, missing the Zacks Consensus Estimate of $2,531 million. The top line also declined 39.4% year over year.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $830 million, down 58.2% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also missed the Zacks Consensus Estimate of $1,120 million.
Gross profit totaled $52.9 million, declining 86% year over year. The pretax loss totaled $7,119 million, down from $275.9 million recorded in the year-ago period amid lower gross profit margins. The unit’s total backlog was $1.15 billion at quarter-end, down sharply from $10.4 billion as of Jan 31, 2022.
North American Motorized RVs: Revenues from the segment totaled $738.6 million, which fell 24.4% year over year, owing to a decrease in unit shipments. The top line also lagged the consensus mark of $1,040 million. Gross profit totaled $107.2 million, dwindling 31.4% year over year. Consequently, pretax profit came in at $61.5 million, declining 40.8% from the year-ago period. The segment’s backlog was $1.85 billion, down from $4.23 billion as of Jan 31, 2022.
European RVs: Revenues from the segment came in at $647 million, down 10.6% from the year-ago period. However, the top line outpaced the consensus mark of $547 million. Gross profit of $91.4 million, rising 1.4% year over year. The segment reported a pretax income of $12 million, higher than the year-ago level of $9.6 million. The backlog of the segment was $3,055 million, reflecting a rise from $3,051 million recorded on Jan 31, 2022.
Financials
As of Jan 31, 2023, Thor had cash and cash equivalents of $281.6 million and long-term debt of $1,758.5 million. During the second quarter of 2023, THO repurchased $25.4 million of common stock.
Revised Guidance for 2023
Thor revised its full-year guidance for fiscal 2023. Thor now projects its full year consolidated net sales in the range of $10.5-$11.5 billion, down from the range of $11.5-$12.5 billion estimated during the first quarter of 2023. The consolidated gross profit margin is now expected to be in the range of 13.4-14.2%, down from the range of 14.2-14.9%. Diluted earnings per share are now expected to be in the range of $5.50-$6.50, down from previously projected range of $7.40-$8.70.
Zacks Rank & Key Picks
THO currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 4.02%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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