Recreational vehicle (RV) maker Thor Industries (THO - Free Report) delivered adjusted earnings of $1.68 per share for fourth-quarter fiscal 2023, which surpassed the Zacks Consensus Estimate of 97 cents per share. This outperformance can be primarily attributed to better-than-expected results from the European RVs segment. The bottom line declined a massive 67.3% from the year-ago profit of $5.15 per share. The company registered revenues of $2,738 million for the quarter under review, outpacing the Zacks Consensus Estimate of $2,457 million. However, the top line declined 28.4% year over year.
As of Jul 31, 2023, Thor had cash and cash equivalents of $441.2 million and long-term debt of $1,291.3 million. THO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $930.6 million, down 48.2% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also fell short of our estimate of $942.4 million. Gross profit totaled $110.7 million, declining 59.4% year over year amid higher manufacturing overhead costs and warranty expenses. Pretax income totaled $55.6 million, down from $181.6 million recorded in the year-ago period amid lower gross profit margins and reduced sales. The unit’s total backlog was $756 million at quarter-end, down sharply from $2.57 billion as of Jul 31, 2022.
North American Motorized RVs: Revenues from the segment totaled $656.1 million, which fell 36% year over year, owing to a decrease in unit shipments and net price per unit. The top line also lagged our forecast of $703 million. Gross profit totaled $56.4 million, dwindling 69.3% year over year amid higher material costs and an increase in sales discounts. Consequently, pretax profit came in at $21 million, tanking 83.5% from the year-ago period. The segment’s backlog was $1.24 billion, down from $3.43 billion as of Jul 31, 2022.
European RVs: Revenues from the segment came in at $1,019 million, up 26.3% from the year-ago period, thanks to higher shipments and an increase in price per unit. The top line also outpaced our projection of $546 million. Gross profit of $193.3 million rose 26.7% year over year on lower manufacturing overhead costs and higher sales. The segment reported a pretax income of $101.7 million, higher than the year-ago level of $74.8 million. The backlog of the segment was $3.55 billion, reflecting a rise from $2.75 billion recorded on Jul 31, 2022.
Fiscal 2024 Forecasts
Thor projects its full-year consolidated net sales in the range of $10.5-$11.0 billion. The consolidated gross profit margin is expected to be in the range of 14.5-15%. Earnings per share are now expected to be in the range of $6.25-$7.25.
Key Picks From the Auto Space
A few top-ranked stocks in the auto space include Gentex Corporation (GNTX - Free Report) , Commercial Vehicle Group (CVGI - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1.
The Zacks Consensus Estimate for GNTX’s 2023 sales and EPS implies year-over-year growth of 17.3% and 29.4%, respectively. The earnings estimate for 2023 has been revised upward by 7 cents in the past 60 days.
The Zacks Consensus Estimate for CVGI’s 2023 sales and EPS implies year-over-year growth of 4.05% and 102%, respectively. The earnings estimate for 2023 has been revised upward by 8 cents in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2023 sales and EPS implies year-over-year growth of 15% and 125.7%, respectively. The earnings estimate for 2023 has been revised upward by $1.71 in the past 60 days.
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Recreational vehicle (RV) maker Thor Industries (THO - Free Report) delivered adjusted earnings of $1.68 per share for fourth-quarter fiscal 2023, which surpassed the Zacks Consensus Estimate of 97 cents per share. This outperformance can be primarily attributed to better-than-expected results from the European RVs segment. The bottom line declined a massive 67.3% from the year-ago profit of $5.15 per share. The company registered revenues of $2,738 million for the quarter under review, outpacing the Zacks Consensus Estimate of $2,457 million. However, the top line declined 28.4% year over year.
As of Jul 31, 2023, Thor had cash and cash equivalents of $441.2 million and long-term debt of $1,291.3 million. THO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $930.6 million, down 48.2% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also fell short of our estimate of $942.4 million. Gross profit totaled $110.7 million, declining 59.4% year over year amid higher manufacturing overhead costs and warranty expenses. Pretax income totaled $55.6 million, down from $181.6 million recorded in the year-ago period amid lower gross profit margins and reduced sales. The unit’s total backlog was $756 million at quarter-end, down sharply from $2.57 billion as of Jul 31, 2022.
North American Motorized RVs: Revenues from the segment totaled $656.1 million, which fell 36% year over year, owing to a decrease in unit shipments and net price per unit. The top line also lagged our forecast of $703 million. Gross profit totaled $56.4 million, dwindling 69.3% year over year amid higher material costs and an increase in sales discounts. Consequently, pretax profit came in at $21 million, tanking 83.5% from the year-ago period. The segment’s backlog was $1.24 billion, down from $3.43 billion as of Jul 31, 2022.
European RVs: Revenues from the segment came in at $1,019 million, up 26.3% from the year-ago period, thanks to higher shipments and an increase in price per unit. The top line also outpaced our projection of $546 million. Gross profit of $193.3 million rose 26.7% year over year on lower manufacturing overhead costs and higher sales. The segment reported a pretax income of $101.7 million, higher than the year-ago level of $74.8 million. The backlog of the segment was $3.55 billion, reflecting a rise from $2.75 billion recorded on Jul 31, 2022.
Fiscal 2024 Forecasts
Thor projects its full-year consolidated net sales in the range of $10.5-$11.0 billion. The consolidated gross profit margin is expected to be in the range of 14.5-15%. Earnings per share are now expected to be in the range of $6.25-$7.25.
Key Picks From the Auto Space
A few top-ranked stocks in the auto space include Gentex Corporation (GNTX - Free Report) , Commercial Vehicle Group (CVGI - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1.
The Zacks Consensus Estimate for GNTX’s 2023 sales and EPS implies year-over-year growth of 17.3% and 29.4%, respectively. The earnings estimate for 2023 has been revised upward by 7 cents in the past 60 days.
The Zacks Consensus Estimate for CVGI’s 2023 sales and EPS implies year-over-year growth of 4.05% and 102%, respectively. The earnings estimate for 2023 has been revised upward by 8 cents in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2023 sales and EPS implies year-over-year growth of 15% and 125.7%, respectively. The earnings estimate for 2023 has been revised upward by $1.71 in the past 60 days.
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 >>
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