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Bear of the Day: Thor Industries (THO)

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Thor Industries (THO - Free Report) is a Zacks Rank #5 (Strong Sell) after missing its last quarter in mid-September and as it prepares to report again in early December. Estimates have slipped and let's look at why it is a Zacks Rank  #5 (Strong Sell) in this Bear of the Day article.

Description

Thor Industries manufactures a wide range of recreational vehicles (RVs) at various manufacturing facilities located in Indiana and Ohio and sold through independent dealers in the U.S. and Canada.

Recent Earnings

Back on September 20, the company missed the Zacks Consensus Estimate by $0.26 in reporting earnings of $1.67.  The Zacks Consensus Estimate was looking for $1.93 so that translates into a negative earnings surprise of 13.4%.

This was the second miss in a row of the Zacks Consensus Estimate, with the prior quarter being a negative earnings surprise of 4.5%.

Estimates Fall

Over the last 90 days, estimates for THO have dropped.  The Zacks Consensus Estimate for the current quarter slipped to $1.53 from $2.07 while the number for next quarter also slipped to $1.60 from $1.97.

The Zacks Consensus Estimate for the current year has dropped from $9.26 to $8.00 over that 90 day time horizon and the next fiscal year number has also slipped from $10.45 to $8.77.

Large drops like that in the Zacks Consensus Estimate will push a stocks rank down to the lower levels.  That is just what happened to THO.

Upcoming Earnings

I see THO slated to report on December 6 before the market opens.  Right now, there is a slightly negative Earnings ESP, so the most recently updated estimate by an analyst came in just below the consensus.

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