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Thor (THO) Shares Gain 3% on Q2 Earnings and Sales Beat

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Thor Industries, Inc.’s (THO - Free Report) shares moved up 3% yesterday, after the company delivered a comprehensive beat for second-quarter fiscal 2022 (ended Jan 31, 2022). The recreational vehicle (RV) maker posted adjusted earnings of $4.79 per share, which beat the Zacks Consensus Estimate of $3.40. This outperformance can be attributed to higher-than-anticipated revenues across North American Towable and Motorized RVs segments. The bottom line jumped 101.3% from the year-ago profit of $2.38 per share. The company registered revenues of $3,875 million for the quarter under review, topping the Zacks Consensus Estimate of $3,553 million. The top line also recorded a 42.1% year-over-year increase.

Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. Price, Consensus and EPS Surprise

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

Segmental Results

North American Towable RVsRevenues from the segment came in at $1,985.1 million, surging 44.6% year over year on the back of robust shipments and benefits from the Tiffin Group buyout. The top line also surpassed the Zacks Consensus Estimate of $1,712 million. Pretax profit totaled $275.9 million, up from $147.9 million recorded in the year-ago period, thanks to higher sales and improved gross profit margins. At quarter-end, the unit’s total backlog was $10.4 billion, skyrocketing from $5.2 billion as of Jan 31, 2021.

North American Motorized RVsRevenues from the segment totaled $976.8 million, which soared 69.3% year over year, thanks to higher unit sales and the Tiffin Group buyout benefits. The top line also outpaced the consensus mark of $774 million. Pretax profit came in at $104 million, up from $43.4 million recorded in the year-ago period. Backlog in the segment summed $4.2 billion, jumping from $2.9 billion as of Jan 31, 2021.

European RVs: Revenues from the segment came in at $723.7 million, down 1.3% from the year-ago period. The top line also missed the consensus mark of $799 million. The segment incurred a pretax income of $9.6 million, lower than the year-ago level of $10.2 million. Backlog of the segment was $3 billion, reflecting growth from $2.6 billion recorded on Jan 31, 2021.

Financials and Consolidated Backlog

As of Jan 31, 2022, Thor had cash and cash equivalents of $330.3 million and long-term debt of $2,167.7 million. Consolidated backlog as of quarter-end was $17.73 billion, reflecting a year-over-year rise of 60%. Thor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Whispers for Winnebago

Thor’s closest peer Winnebago Industries (WGO - Free Report) is expected to report fiscal second-quarter 2022 results soon. Winnebago surpassed earnings estimates in the last four quarters, with an average of 40%. Our proven model, however, does not conclusively predict an earnings beat for WGO this time around because the company doesn’t have the right combination of a positive ESP and a favorable Zacks Rank.

Winnebago has an Earnings ESP of -2.88% and a Zacks Rank #3. The Zacks Consensus Estimate for WGO’s to-be-reported quarter’s earnings and revenues is pegged at $3.06 per share and $1.1 billion, respectively.


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