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Things To Note Ahead of Thor's (THO) Q4 Earnings Release

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Thor Industries (THO - Free Report) is set to release fourth-quarter fiscal 2021 results on Sep 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.88 and $3.33 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 46%. 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 fourth-quarter earnings per share has been revised upward by 3 cents in the past seven days. The bottom-line projection implies year-over-year growth of 34.6%. The Zacks Consensus Estimate for quarterly revenues also suggests a year-over-year increase of 40.8%.

Factors at Play

Economic growth — buoyed by widespread vaccination drive and massive fiscal stimulus — is set to have a positive impact on Thor’s fourth-quarter fiscal 2021 results. Even after the gradual easing of travel restrictions, the demand for RVs continued its momentum because of safe travel enthusiasts and millennials’ zeal for off-the-grid living. These factors will positively impact Thor’s results for the quarter to be reported.

The Zacks Consensus Estimate for fourth-quarter fiscal 2021 revenues from the North American Motorized RVs segment is pegged at $735 million, indicating a significant rise from $367 million recorded in the comparable year-ago period. The consensus mark for revenues from the North American Towable RVs unit is $1,665 million, implying a year-over-year increase of 41.1%. Thor’s quarterly revenues from these two segments are expected to have been buoyed by the TiffinHomes buyout. The acquisition of Erwin Hymer Group — which bolstered Thor’s position in Europe — is set to have aided revenues of the European RVs unit.

On a somewhat discouraging note, supply constraints and the shortage of various RV components in Europe and North America might have posed hiccups for the company in the July-end quarter. A tight labor market, and high commodity and SG&A costs are also likely to have dented its fiscal fourth-quarter 2021 margins.

Earnings Whispers

Our proven model does not conclusively predict 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: It has an Earnings ESP of -3.62%. This is because the Most Accurate Estimate of $2.78 per share is 10 cents lower 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 — 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 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

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