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Thor's (THO) Q4 Earnings to be Hurt by Soft Market Demand
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Thor Industries, Inc. (THO - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Sep 28, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 200% and 18.5%, respectively. However, the metrics declined 27.1% and 33.1% year over year, respectively, due to lackluster segmental performance.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has moved 5.3% north over the past 30 days to $1.39. This indicates an 18.2% decrease from the year-ago earnings of $1.70 per share. The consensus estimate for revenues is $2.30 billion, suggesting a 0.6% year-over-year decline.
Softness in North American and European markets, as well as margin pressure are expected to have weighed on Thor’s profitability in the quarter to be reported. Although its demand gradually improved with the easing of COVID-19 restrictions, the northern Indiana region — where majority of the company’s facilities and suppliers are located — could have exacerbated the supply chain, workforce as well as other COVID-19-related risks.
Also, in Europe, it experienced some supply constraints from chassis manufacturers and certain component parts from non-chassis raw material vendors, which are likely to have put pressure on the top line.
The company has been plagued with various incremental costs and expenses like legal and professional costs, along with acquisition-related expenses. Continuous cost pressure and foreign currency headwinds may have been causes of concern for Thor, which shares space with Skyline Champion Corp. (SKY - Free Report) , Winnebago Industries, Inc. (WGO - Free Report) and Cavco Industries, Inc. (CVCO - Free Report) in the same industry.
Although it is gradually showing an improvement, the negative impacts of the aforementioned factors are expected to reflect on the to-be-reported quarter’s results.
What the Zacks Model Says
Our proven model predicts an earnings beat for Thor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +4.51%. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #2.
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Thor's (THO) Q4 Earnings to be Hurt by Soft Market Demand
Thor Industries, Inc. (THO - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Sep 28, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 200% and 18.5%, respectively. However, the metrics declined 27.1% and 33.1% year over year, respectively, due to lackluster segmental performance.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has moved 5.3% north over the past 30 days to $1.39. This indicates an 18.2% decrease from the year-ago earnings of $1.70 per share. The consensus estimate for revenues is $2.30 billion, suggesting a 0.6% year-over-year decline.
Thor Industries, Inc. Price and EPS Surprise
Thor Industries, Inc. price-eps-surprise | Thor Industries, Inc. Quote
Factors to Note
Softness in North American and European markets, as well as margin pressure are expected to have weighed on Thor’s profitability in the quarter to be reported. Although its demand gradually improved with the easing of COVID-19 restrictions, the northern Indiana region — where majority of the company’s facilities and suppliers are located — could have exacerbated the supply chain, workforce as well as other COVID-19-related risks.
Also, in Europe, it experienced some supply constraints from chassis manufacturers and certain component parts from non-chassis raw material vendors, which are likely to have put pressure on the top line.
The company has been plagued with various incremental costs and expenses like legal and professional costs, along with acquisition-related expenses. Continuous cost pressure and foreign currency headwinds may have been causes of concern for Thor, which shares space with Skyline Champion Corp. (SKY - Free Report) , Winnebago Industries, Inc. (WGO - Free Report) and Cavco Industries, Inc. (CVCO - Free Report) in the same industry.
Although it is gradually showing an improvement, the negative impacts of the aforementioned factors are expected to reflect on the to-be-reported quarter’s results.
What the Zacks Model Says
Our proven model predicts an earnings beat for Thor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +4.51%. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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