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Thor Industries (THO - Free Report) delivered mixed results for first-quarter fiscal 2023 (ended Oct 31, 2022). The recreational vehicle (RV) maker posted adjusted earnings of $2.53 per share, which surpassed the Zacks Consensus Estimate of $2.09. This outperformance can be largely attributed to higher-than-anticipated revenues from North American Motorized and European RVs segments. This marked the 11th straight earnings beat for Thor. The bottom line, however, declined from the year-ago profit of $4.34 per share. The company registered revenues of $3,108.1 million for the quarter under review, missing the Zacks Consensus Estimate of $3,117 million. The top line also fell 21.5% year over year.
Shares of Thor dropped around 5% yesterday to close the session at $79.95. Investors were seemingly discouraged by the dim fiscal 2023 outlook for sales and profits.
Thor Industries, Inc. Price, Consensus and EPS Surprise
North American Towable RVs: Revenues from the segment came in at $1,317.8 million, plunging 41.2% year over year on the back of a decline in shipments. The top line also lagged the Zacks Consensus Estimate of $1,760 million. Gross profit totaled $195.8 million, down 52.1% year over year. Pretax profit totaled $111 million, down from $266.3 million recorded in the year-ago period amid lower gross profit margins and reduced sales. At quarter-end, the unit’s total backlog was $1.57 billion, declining sharply from $10.4 billion as of Oct 31, 2021.
North American Motorized RVs: Revenues from the segment totaled $1,123.5 million, which rose 21.5% year over year, thanks to higher unit sales and the Tiffin Group buyout benefits. The top line also outpaced the consensus mark of $1,036 million. Gross profit totaled $185.7 million, up 23.9% year over year. Consequently, pretax profit came in at $124.3 million, jumping from $88.9 million recorded in the year-ago period, thanks to higher sales and gross profit margins. Backlog in the segment was $2.86 billion, down from $4.27 billion as of Oct 31, 2021.
European RVs: Revenues from the segment came in at $504.3 million, down 20.3% from the year-ago period. The top line, however, beat the consensus mark of $450 million. Gross profit of $68.8 million inched up 2.1% year over year. The segment incurred a pretax loss of $6.4 million, narrower than the year-ago level of $18 million. The backlog of the segment was $2.98 billion, reflecting a drop from $3.35 billion recorded on Oct 31, 2021.
Financials
As of Oct 31, 2022, Thor had cash and cash equivalents of $291.7 million and long-term debt of $1,714.6 million. During the fiscal first quarter, the company hiked its quarterly payout by 5%, marking the 13th straight year of dividend increase. During the quarter under review, Thor — currently carrying a Zacks Rank #4 (Sell) — bought back 338,733 shares worth $25.4 million, at an average price of $75.01.
Thor expects fiscal 2023 net sales in the band of $11.5-$12.5 billion, implying a decline from $16.31 billion recorded in fiscal 2022. The gross profit margin is expected in the range of 14.2-14.9%. Earnings per share are envisioned to be between $7.40 and $8.70, suggesting a sharp contraction from $20.59 in fiscal 2022.
Earnings Whispers for Peers
REV Group (REVG - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #3. The stock is slated to report fiscal fourth-quarter 2022 earnings on Dec 14.
The Zacks Consensus Estimate for REV Group’s to-be-reported quarter’s earnings and revenues is pegged at 26 cents per share and $598 million, respectively. REVG surpassed earnings estimates in two of the last four quarters for as many misses, with the average negative surprise being 5.3%.
Winnebago Industries (WGO - Free Report) has an Earnings ESP of +6.56% and a Zacks Rank #4. The stock is scheduled to post fourth-quarter fiscal 2022 on Dec 16.
The Zacks Consensus Estimate for Winnebago’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $899 million, respectively. Encouragingly, WGO surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 23.5%.
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Thor (THO) Shares Dip Despite Q1 Earnings Beat on Glum '23 View
Thor Industries (THO - Free Report) delivered mixed results for first-quarter fiscal 2023 (ended Oct 31, 2022). The recreational vehicle (RV) maker posted adjusted earnings of $2.53 per share, which surpassed the Zacks Consensus Estimate of $2.09. This outperformance can be largely attributed to higher-than-anticipated revenues from North American Motorized and European RVs segments. This marked the 11th straight earnings beat for Thor. The bottom line, however, declined from the year-ago profit of $4.34 per share. The company registered revenues of $3,108.1 million for the quarter under review, missing the Zacks Consensus Estimate of $3,117 million. The top line also fell 21.5% year over year.
Shares of Thor dropped around 5% yesterday to close the session at $79.95. Investors were seemingly discouraged by the dim fiscal 2023 outlook for sales and profits.
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 RVs: Revenues from the segment came in at $1,317.8 million, plunging 41.2% year over year on the back of a decline in shipments. The top line also lagged the Zacks Consensus Estimate of $1,760 million. Gross profit totaled $195.8 million, down 52.1% year over year. Pretax profit totaled $111 million, down from $266.3 million recorded in the year-ago period amid lower gross profit margins and reduced sales. At quarter-end, the unit’s total backlog was $1.57 billion, declining sharply from $10.4 billion as of Oct 31, 2021.
North American Motorized RVs: Revenues from the segment totaled $1,123.5 million, which rose 21.5% year over year, thanks to higher unit sales and the Tiffin Group buyout benefits. The top line also outpaced the consensus mark of $1,036 million. Gross profit totaled $185.7 million, up 23.9% year over year. Consequently, pretax profit came in at $124.3 million, jumping from $88.9 million recorded in the year-ago period, thanks to higher sales and gross profit margins. Backlog in the segment was $2.86 billion, down from $4.27 billion as of Oct 31, 2021.
European RVs: Revenues from the segment came in at $504.3 million, down 20.3% from the year-ago period. The top line, however, beat the consensus mark of $450 million. Gross profit of $68.8 million inched up 2.1% year over year. The segment incurred a pretax loss of $6.4 million, narrower than the year-ago level of $18 million. The backlog of the segment was $2.98 billion, reflecting a drop from $3.35 billion recorded on Oct 31, 2021.
Financials
As of Oct 31, 2022, Thor had cash and cash equivalents of $291.7 million and long-term debt of $1,714.6 million. During the fiscal first quarter, the company hiked its quarterly payout by 5%, marking the 13th straight year of dividend increase. During the quarter under review, Thor — currently carrying a Zacks Rank #4 (Sell) — bought back 338,733 shares worth $25.4 million, at an average price of $75.01.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Guidance
Thor expects fiscal 2023 net sales in the band of $11.5-$12.5 billion, implying a decline from $16.31 billion recorded in fiscal 2022. The gross profit margin is expected in the range of 14.2-14.9%. Earnings per share are envisioned to be between $7.40 and $8.70, suggesting a sharp contraction from $20.59 in fiscal 2022.
Earnings Whispers for Peers
REV Group (REVG - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #3. The stock is slated to report fiscal fourth-quarter 2022 earnings on Dec 14.
The Zacks Consensus Estimate for REV Group’s to-be-reported quarter’s earnings and revenues is pegged at 26 cents per share and $598 million, respectively. REVG surpassed earnings estimates in two of the last four quarters for as many misses, with the average negative surprise being 5.3%.
Winnebago Industries (WGO - Free Report) has an Earnings ESP of +6.56% and a Zacks Rank #4. The stock is scheduled to post fourth-quarter fiscal 2022 on Dec 16.
The Zacks Consensus Estimate for Winnebago’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $899 million, respectively. Encouragingly, WGO surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 23.5%.