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Major Factors Shaping Thor's (THO) Earnings This Season

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Thor Industries (THO - Free Report) is set to release third-quarter fiscal 2021 results on Jun 8, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.36 and $3.02 billion, respectively.

The leading recreational vehicle (RV) maker posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues across all segments. Thor surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 86.6%. This is depicted in the graph below:

Thor Industries, Inc. Price and EPS Surprise

Thor Industries, Inc. Price and EPS Surprise

Thor Industries, Inc. price-eps-surprise | Thor Industries, Inc. Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for fiscal third-quarter earnings per share has been revised upward by 5 cents in the past seven days. This compares favorably with the year-ago earnings of 43 cents per share, indicating a whopping 448.8% rise. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 80%.

Things to Note

The RV industry is hugely dependent on the broader economic environment. Strong economic growth — buoyed by widespread vaccination drive and massive fiscal stimulus — is set to have a positive impact on Thor’s third-quarter fiscal 2021 results. It is also to be noted that even after the gradual easing of restrictions, the risks of availing public transport like flights prompted many first-time buyers to opt for RVs to go camping around the country or enjoy a vacation, which is likely to have boosted the demand for Thor’s products in the to-be-reported quarter.

Importantly, the quarterly results are expected to benefit from the acquisitions of Erwin Hymer Group and TiffinHomes. In addition to higher sales, Thor’s earnings are also likely to have got a boost from increased focus on operational efficiency.

The Zacks Consensus Estimate for third-quarter fiscal 2021 revenues from the North American Motorized RVs segment is pegged at $706 million, indicating a significant rise from $264 million recorded in the comparable year-ago period. The consensus mark for revenues from the North American Towable RVs unit is $1,427 million, implying a year-over-year increase of 84.6%. The Zacks Consensus Estimate for revenues from the European RVs segment is pegged at $812 million, signaling an uptick from $615 million recorded in third-quarter fiscal 2020.

Earnings Whispers

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 odds of an earnings beat.

Earnings ESP: Thor has an Earnings ESP of +6.65%. This is because the Most Accurate Estimate of $2.52 per share is 16 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Thor Industries — whose peers include Winnebago Industries (WGO - Free Report) , REV Group, Inc. (REVG - Free Report) and LCI Industries (LCII - Free Report) — carries a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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